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Standard Operations Reference Models - the key to realising HP's Adaptive Enterprise

Taylor, Richard; Tofts, Chris; Yearworth, Mike; Francis, Joe; Riordan, Bill


Keyword(s): operations research; supply chain; mathematical modelling; business metrics

Abstract: Addressable IT spend in US Fortune 1000 companies adopting an open-standard supply-chain reference model will rise from $9.8B in 2004 to $19B in 2007, or roughly 71% of the market. Companies using such a model have startling performance statistics: 721% more profitable, 280% more revenue on average than competitors. Viewing IT spend as a function of revenue, companies using open-standard operations domains (Supply Chain and other Operating Domains) will grow IT spending fastest within all industry sectors due to business performance improvements, and revenue growth relative to competitors. HP is poised to reap the rewards of addressing its IT offerings to sectors using process, process reference models, and open standards through a combination of three factors: the creation and communication of open business standards in all enterprise business domains - with deep linkage to HP's Darwin Reference; the ability to rapidly organize and articulate exploitation through methodology the full range of IT offerings and Darwin Reference around open business process model standards; the ability to patent, and copyright unique approaches to business process analysis, methodology, and industry vertical-specific information locking out competition in non-open standard areas.

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