The Enterprise Value Framework

Technology is the fourth conversation. First, clarify the outcome, the capability and the operating model needed to achieve it.

Developed by Manoj Narang, the framework provides a sequence for discussing enterprise technology decisions. Soluvise applies it to focused advisory reviews, particularly in SAP manufacturing and supply chain.

1. Business outcome

Define a measurable change in business performance: profitable growth, productivity or resilience. A go-live date is a project milestone; it is not the outcome itself. Establish what needs to change and which baseline will make progress visible.

2. Business capability

Identify what the business must be able to do repeatedly to create that outcome. Examples include sensing demand earlier, planning capacity or coordinating materials and production. The capability is owned by the business.

3. Operating model

Examine how people, processes, governance and data make the capability work. Clarify responsibilities, decision rights, handoffs and controls. Without these choices, a useful capability can remain an idea from a workshop.

4. Technology

Assess how the technology can support the target capability and operating model. Consider data, integration, experience, automation and architecture in that context. The proposed solution should serve the business design.

5. Enterprise value

Assess whether the whole system is producing the desired result. Connect performance improvement with revenue quality, margin or resilience, while accounting for costs and the mechanism required to capture the benefit.

Ownership, measurement and value capture

Technology creates capability. Business change converts capability into performance. Value is realised when outcomes are owned, measured and captured. This means distinguishing the delivery owner from the business outcome owner and agreeing how finance will challenge the benefit assumptions.

Four questions for an investment discussion

1. Which business outcome will this materially improve?
2. Which capability will make that outcome repeatable?
3. What operating model changes are required?
4. How will we measure the enterprise value created?

Evidence and limits

This is a working advisory framework, not an independently validated methodology or a guarantee of results. Soluvise separates professional experience, externally verified research and illustrative scenarios. Financial assumptions require business evidence and appropriate validation.

Apply it through value discovery, SAP readiness or an investment review.