BPM Implementation - Success Criteria and Best Practice

BPM Implementation - Success Criteria and Best Practice:

BPM Implementation - Success Criteria and Best Practice Alan McSweeney

What is a Business Process?:

January 9, 2011 2 What is a Business Process? A business process is a collection of related , structured activities that produce a service or product that meet the needs of a client. These processes are critical to any organisation as they generate revenue and often represent a significant proportion of costs. Documenting business processes enables understanding, improvement and provides control Order

What is Business Process Management (BPM)?:

January 9, 2011 3 What is Business Process Management (BPM)? Business Process Management (BPM) is a method of efficiently aligning an organisation with the wants and needs of clients It is a complete management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology As organisations look to achieve their objectives, BPM attempts to continuously improve processes - the process to define, measure and improve your processes – a ‘process optimisation' process

Lessons Learned From Large Systems Implementation:

January 9, 2011 4 Lessons Learned From Large Systems Implementation 80 % 65 % 60 % 50 % 45 % 35 % 35 % 30 % 20 % More attention on process optimisation Align systematically to company goals Pay more attention to understanding the subject area spanned Outsource project management of the project to a third party Increase investment in training Greater employees involvement Enforce changes more courageously Identify and capture proof of benefits and saving as part of scope Avoid big-bang implementations 55 % Implementation of a management information system as part of scope

Processes Are Key To Business Success:

January 9, 2011 5 Processes Are Key To Business Success Understanding your processes are key in a number of business initiatives Often this is done in isolation and in different ways And using different tools

A Single, Consistent View of the Truth is Critical:

January 9, 2011 6 A Single, Consistent View of the Truth is Critical Having a single repository of business process information enables….. Common standards Re-use / best practice Improved decision support Significant time savings = increased efficiency & effectiveness

Key Business Drivers for BPM:

January 9, 2011 7 Key Business Drivers for BPM Save money – Do things better with optimised processes Build better new processes faster Know what you are doing (right or wrong) through current process understanding Get control of parallel processes by consolidating to core processes Get non-value added work through automation of manual processes Business process outsourcing Implement ERP software better Stay ahead of compliance Move faster through scenario building for agility and policy management

Benefits of Business Process Management:

January 9, 2011 8 Benefits of Business Process Management Reduced process costs Increased quality / reduced number of errors Reduced process throughput times Reduced training time / expenses Reduced number of (internal) support requests Reduced number of customer complaints Increased forecast accuracy 10 - 15 % 10 - 30 % 20 - 30 % 10 - 30 % 15- 30 % 20 - 30 % 15 - 30 % Real benefits from BPM Intangible benefits also: better information quality

How do Organisations Improve?:

January 9, 2011 9 How do Organisations Improve? Major changes must start at the top Ultimately, everyone must be involved Effective change requires a goal and knowledge of the current process Change is continuous Change will not be retained without effort and periodic reinforcement Improvement is continuous

Why Business Process Management?:

January 9, 2011 10 Why Business Process Management? Symptoms of Poor Business Process Management and Design No standard process/method for addressing how to define business requirements and when to improve business processes When automation of processes is commissioned, “Business” says that they do not always get what they think they have asked for The processes used to document and communicate business processes and requirements are neither easy nor documented Our business programs frequently exist in a culture of reacting to cross-functional problems/emergencies IT has responsibility for creating and maintaining business process flows, business requirements, and business rules

Why Business Process Management and Design – Common Problems:

January 9, 2011 11 Why Business Process Management and Design – Common Problems Lack of an integrated process for capturing the business domain Techniques that are used are not consistently applied We cannot/do not differentiate key stakeholders’ views and different business views We are working without a common language across business, IT and our other partners/vendors Inadequate root cause level business process analysis yields inadequate business requirements and rules to facilitate process optimisation/automation

Why Business Modelling – The Problems:

January 9, 2011 12 Why Business Modelling – The Problems Lack of an integrated process for capturing the business domain Techniques that are used are not consistently applied We cannot/do not differentiate key stakeholders’ views and different business views We are working without a common language across business, IT and our other partners/vendors Inadequate root cause level business process analysis yields inadequate business requirements and rules to facilitate process optimisation/automation

More Than a Picture:

January 9, 2011 13 More Than a Picture A Picture . . . . Provides information Has no enforceable rigour Cannot be reused easily Cannot be updated easily A Model can be . . . . Analysed Reported on Used to navigate through relationships Used for simulation Trigger workflows Used to drive business process management

Finding the Right Project:

January 9, 2011 14 Finding the Right Project Key characteristics of right project The process or project is related to a key business issue You have/can get customer input on the issue Management assigns this project a high priority Process owner and key stakeholders are defined The problem is stated as a target or need and NOT a solution The sponsor of this project can commit time and resources to this project The business process(es) will not be changed by another initiative at any time in the near future Focus on: Which process is the most critical Which process contributes the most Ensure the benefits of an improvement project do not degrade over time

Critical Success Factors :

January 9, 2011 15 Critical Success Factors Linked to business strategies and goals Linked to customer value Ability to implement incremental value added change Ability to track results and measure success Ability to be aligned with the business

Successful Business Process Analysis, Design and Implementation Projects Have :

January 9, 2011 16 Successful Business Process Analysis, Design and Implementation Projects Have Understood the Business Architecture – Business Process, Metrics, Strategy and Goals Engaged stakeholders and defined process ownership Taken an iterative and incremental approach Tackled the right project at the right time Implemented internal and external standards and the right level of governance Understood the role of information Incorporated process improvement Achieve business results with a series of small successes

Do Not Ignore Organisational Change:

January 9, 2011 17 Do Not Ignore Organisational Change The failure to manage the human side of business changes is a major contributor to the reasons programme, projects and initiatives fail Organisations may not have the experience necessary to manage the speed and complexity of the large-scale changes Managers are all too frequently concerned with tactical, operational issues and have not had the time to consider organisational changes

Process Analysis within Service Orientation:

January 9, 2011 18 Process Analysis within Service Orientation Process Driven Integration Services Based Integration Cut integration costs and reduce development New Business Initiatives Agility, Growth – New Products and Services Increased Delivery Channels Process Improvement Optimising business processes Straight Through Processing IT Regeneration Enterprise IT Architecture – Aligning more with Business Legacy Replacement Extending the Enterprise Partnering, B2B

Intelligent Use of BPM:

January 9, 2011 19 Intelligent Use of BPM Help prioritising intelligent cuts: via a business process architecture and a good process measurement system Process Optimisation: BPM teams can quickly examine processes and suggest changes to eliminate waste Good BPM teams can almost always identify some quick changes that will save 10-30%

Intelligent Use of BPM:

January 9, 2011 20 Intelligent Use of BPM Reorganisations Changes in status also require that new processes and business rules be implemented throughout the organisation Additional Regulation New regulations require new practices and new business rules

Service Orientation – Aligning IT with Business:

January 9, 2011 21 Dynamic Static AR IT Assets Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service Trading Partners Legacy Systems Web Sites Databases Core Applications Service Orientation – Aligning IT with Business

Service Orientation – Aligning IT with Business:

January 9, 2011 22 Dynamic Static AR Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service IT Assets Trading Partners Legacy Systems Web Sites Databases Core Applications Mixed IT Systems and Applications Service Orientation – Aligning IT with Business

Service Orientation – Aligning IT with Business:

January 9, 2011 23 Dynamic Static AR Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service IT Assets Trading Partners Legacy Systems Web Sites Databases Core Applications Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Business Model Service Orientation – Aligning IT with Business

Service Orientation – Aligning IT with Business:

January 9, 2011 24 Dynamic Static AR Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service IT Assets Trading Partners Legacy Systems Web Sites Databases Core Applications Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Business / IT Gap Service Orientation – Aligning IT with Business

Service Orientation – Aligning IT with Business:

January 9, 2011 25 Dynamic Static AR IT Assets Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service Trading Partners Legacy Systems Web Sites Databases Core Applications Business Processes Bridges the Gap Service Orientation – Aligning IT with Business

Service Orientation – Aligning IT with Business:

January 9, 2011 26 Dynamic Static AR IT Assets Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service Service Oriented Architecture IT Assets Trading Partners Legacy Systems Web Sites Databases Core Applications Service Orientation – Aligning IT with Business Business Processes Bridges the Gap

Service Orientation – Aligning IT with Business:

January 9, 2011 27 Dynamic Static AR IT Assets Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service Service Oriented Architecture IT Assets Trading Partners Legacy Systems Web Sites Databases Core Applications Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Business Process Management Service Orientation – Aligning IT with Business

Service Orientation – Aligning IT with Business:

January 9, 2011 28 Dynamic Static AR IT Assets Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service Service Oriented Architecture IT Assets Trading Partners Legacy Systems Web Sites Databases Core Applications Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Business Process Management Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Process Improvement Service Orientation – Aligning IT with Business

Connecting Business and IT:

January 9, 2011 29 Connecting Business and IT Dynamic Static IT Assets Accountability Reduce Cost New Channels Visibility New Services Customer Service Shareholder Value Governance Business Drivers Business Requirements Better Information insight Support Business Requirements Faster Efficient Delivery Of New Services Automation of Existing Processes Reusable, Standard Services Standard Integration of Services Business Processes Services Services Services Services Business Service Business Service Business Service Business Service Services Business Service Trading Partners Legacy Systems Web Sites Databases Core Applications Business Analysis SOA Layer

Business Challenges:

January 9, 2011 30 Business Challenges Business is facing Global business competition Rapid innovation and fast-changing business requirements Regulatory compliance challenges Increasing cost pressures Technology’s typical response Slow delivery times High maintenance costs Brittle solutions Stove piped functional applications Redundant development efforts and operations Redundant and costly investment in multiple technical solutions Can technology be realigned to support the needs of business?

More Information:

January 9, 2011 31 More Information Alan McSweeney alan@alanmcsweeney.com