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1、Business Model Tutorial How can they possibly understand what we need when they don t understand what we do Manager of a credit approval department The audience for this discussion is software engineers who develop software infrastructure and applications for business people Table of Contents BUSINE
2、SS MODELS 4 RECOGNIZING A MODEL4 SELECTING A MODEL4 WHAT HAPPENS WHEN THE MODEL IS WRONG7 WHAT HAPPENS WHEN THE PROBLEM DEFINITION IS WRONG8 MODELS ARE RE USABLE9 THE FALLACY OF GUT FEELINGS9 THE BUSINESS MODEL IS THE REQUIREMENTS SET10 CUSTOMER11 SERVICE PROVIDER11 GENERALIZING THE MODEL OF CUSTOME
3、R AND PROVIDER11 COMMON BUSINESS ACTIVITIES ACROSS INDUSTRIES11 THE FIRST END TO END THREAD 13 OVERVIEW13 CASES13 SUMMARY15 DEFINING THE BUSINESS PROBLEM OR WHAT S AN ARCHITECT GOOD FOR 16 INTRODUCTION16 CASES16 WHAT IS A SCENARIO 18 WHAT ARE THE USES OF A SCENARIO IN THE REAL WORLD 18 WHAT IS THE P
4、URPOSE OF A SCENARIO IN THE CONTEXT OF A SOFTWARE PROJECT 18 WHY YOU WOULD WANT ONE 19 WHAT IS IN AND NOT IN A SCENARIO 20 WHAT DOES A SCENARIO LOOK LIKE 23 SUMMARY23 CONCLUSIONS 24 PHILOSOPHICAL VIEW24 Overview Software developers are a very intelligent unique population that tends to favor technol
5、ogy based solutions to business problems Because of our predisposition towards technology we sometimes have trouble recognizing the entire business context of the problem that we have been asked to solve Software developers like many doctors are trained to fix the problem Often what everyone is focu
6、ssed on is not the true problem it is just a symptom An approach that recognizes the business context of the problem is more likely to result in a successful project rather than a cancelled project The big nightmare for a software development project is defining the business requirements What are th
7、e requirements How do we get them How do we validate them Often software projects spend six months to over a year just gathering requirements Given a software development project for a business end user community a business model provides the primary leverage to identifying the correct solution Furt
8、hermore the business model can be easily validated which provides some insurance to the business that they are going to get value for their investment What is a business model We all have an innate understanding of models but we need to learn how to match models to business situations In the commerc
9、ial world models repeat themselves across industries once we learn to recognize and use models we become better software developers The process of determining a system architecture to support the business applications should be just common sense but often appears to be black magic Just as with other
10、 areas in life common sense in business comes from years of experience The magic is being able to unwind a highly compiled problem to expose the abstractions that provide problem solving leverage The black part of the magic is a combination of speed which comes from experience and intuition Here is
11、an overview of the concepts discussed in this paper Everybody is concerned about business requirements Where do they come from how do we get them in a timely manner and how do we know they are right Identify the right business model and most of the business requirements are complete Business models
12、are the first leverage point Validate the business model by running an end to end thread Prove that we have a good understanding of the problem space Separate the definition of the problem from the definition of the solution The architect is the second leverage point Build scenarios to clarify the e
13、xpectations of the business community for how the software solution will fit into their day to day work habits Scenarios are the third leverage point Business Models Recognizing a Model We all have models Sometimes we think in terms of stereotypes or we reason by analogy As software designers and de
14、velopers we have strong discrimination abilities we take pride in being able to categorize quickly and efficiently The larger our mental library of stereotypes the quicker we can determine an analogous situation the greater potential we have to solve problems Our experience allows us to continuously
15、 add to our library and create new associations to concepts that are familiar We are exposed to stereotypes early in life Stereotypes become so ingrained that we can be unaware that we filtering our perceptions through a stereotype Stereotypes often become clich such as in cowboy movies where the st
16、ranger rides into town on a dark horse wearing black clothes and a black hat As we get older we gain more experience and perceive situations with greater clarity We realize the limitations of stereotypes We do not speak of refining a stereotype we say break a stereotype However we do refine a model Based on our initial model we start making assumptions Sometimes our assumptions are valid sometimes not When things turn out differently than we expect we need to question our assumptions That is we
