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08 May07 The Role Of Bpm Within Large Enterprises &

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  • 1. The Role of BPM within Large Enterprises & Related Challenges
    • Present views on:
    • The future of Business Processes within Large Organizations; and
    • The major challenges that will need be faced in the next 5 years 
    • Telstra is planning to replace its current suite of Activation systems:
    • The role of the Process Architecture team in such a project; and
    • The value I would add personally to such an activity.
    7th May 2008 Kenneth Mortimer
  • 2. What is BPM? What are Telstra Expectations?
    • IBM
        • Our definition is Business Process Management , which combines business domain expertise and knowledge with associated and supporting technologies to accelerate process improvement , and to facilitate business innovation. BPM strives to integrate the three pillars of an enterprise architecture -- people, processes, and information -- into a single and managed discipline to manage, control, and dictate business innovation. One value of BPM is its capability and promise to discover, design, deploy, interact with, operate, optimize, and analyse complex, long-lived, multi-company business processes . BPM is part of the cycle from the design of the business processes to the identification and realization of an IT infrastructure that provides the platform for their execution.
    • CSC
        • "Today, process has become much more of a focus of all IT systems and associated business thinking. It is now possible to build IT systems whose role is primarily to manipulate processes , any process, not just our usual notions of workflow, data management and application integration. This gives you a direct path to execution of any business design or strategy ."
        • "With BPM today, the business defines, and then simply executes, the business processes. The breakthrough that was required for that had to encompass and synthesize many aspects of what we already had in place," says Smith. This means the unification of a number of enterprise entities, including business design, application development and data management. "We are taking change and innovation off the critical path and out of the IT logjam, by empowering the business as never before ," he says.
    • Key characteristics of Manager Process Architects : Process Knowledge, Team Leadership, and Cultural Fit.
    7th May 2008 Kenneth Mortimer What is Telstra looking from the Manager Process Architects, and BPM overall?
  • 3. The future of Business Processes within Large Organisations/1
    • SIGNIFICANT!
    • The Australian financial sector including banks and insurance companies have been Australian trend setters in the take-up of BPM as reflected in significant increases in profits over the past several years;
    • Why?
    • The financial sector needs to be compliant with AAS, and well as the Companies Act and the regulatory environment of ASIC and APRA; and
    • Using Six Sigma and Lean, the financial sector have rationalised and automated their business processes linking with those of their stakeholders, thus improving productivity!
    7th May 2008 Kenneth Mortimer Only enterprises in the financial services sector have reaped significant benefits from BPM
  • 4. The future of Business Processes within Large Organisations/2
    • Telco's throughout the world have grappled principally with billing systems with other process areas taking a back seat:
      • Failure to get billing right results in One-Tel debacles;
      • Telco's have perceived leveraging technology to expand market share also over-investing in wireless spectrum, over-estimating the take-up by business and consumers, but underestimating internal productivity;
      • This has not delivered positive results;
      • Over-the-top technology focus sent several Telco’s to the wall or made themselves takeover targets;
    • What have been Telstra’s Points of pain?
    7th May 2008 Kenneth Mortimer Depending on process, system, & competition, states of the respective Telco's the situation is variable
  • 5. The future of Business Processes within Large Organisations/3
    • Given the background of many Telco’s, the public service/trade union culture hampered their business transformation to a market orientation on both the demand and supply side;
    • Not only Telco’s but many significant enterprises have failed to recognise the benefits of BPM to deliver customer service and stakeholder outputs; and
    • Governments and government owned entities have been the worst at seeking and implementing productivity improvements though BPM.
    7th May 2008 Kenneth Mortimer BPM delivers significant productivity gains that sometimes is anathema to trade unions
  • 6. The major challenges that will need to be faced in the next 5 years/1
    • Enterprises expect distinctive solutions from IT that address strategic, customer and market needs. These enterprise expectations form the basis of the Gartner 2008 CIO agenda:
    7th May 2008 Kenneth Mortimer
    • Might this Gartner listing well be the basis of a Telstra Transformation Process strategy?
    It is important to maintain knowledge of current process trends
  • 7. The major challenges that will need to be faced in the next 5 years/2
    • I believe that some of the major challenges facing Telstra include:
      • Ensuring the consistent and sustainable application of TeTom across all Telstra’s business units; and
      • The balanced application of process improvement effort across internal and customer-facing areas addressing cost reduction and sales penetration respectively.
    • Competition policy seems to be a major challenge particularly the risk of the Federal government legislating that Telstra should following the models adopted by the UK and NZ governments forcing the separation of wholesale operations from the rest of the carriers’ operations;
    • It may be that Telstra has problems with accelerating the process enabling strategy-to-deployment to gain a competitive advantage?
    What major challenges exist, and if you have not been informed, what are believed to be the key challenges to Telstra? 7th May 2008 Kenneth Mortimer
  • 8. The major challenges that will need to be faced in the next 5 years/3
    • Assess the Telstra Business Plan with regard to those business artefacts relating to areas impacted by Activation Systems;
      • This might include but not be limited to key performance indicators (KPIs) on facets of Activation Systems operations and outcomes; and
      • Surveys of stakeholders including identifying “Points of Pain” involved with the operation of Activation Systems and those affected by less than satisfactory performance of Activation Systems.
    • Obtain and review existing business process maps and related documentation;
      • How do these business process maps align with current operations?
      • Do owners of Activation Systems believe that the current business process maps:
        • Align with “stakeholder needs”; and
        • Are the process maps out of synch with emerging needs of users and beneficiaries of Activation Systems?
    • Determine the revenue at risk from unaligned Activation Systems;
    • Assess the “Buy vs. Build” options open to Telstra; and
    7th May 2008 Kenneth Mortimer It is critical that processes align upwardly with business artefacts and downwardly with technology infrastructure
  • 9. The major challenges that will need to be faced in the next 5 years/4
    • In parallel with assessing the “Buy vs. Build” options open to Telstra;
    • Commence the design of the Future State, Customer Value-driven Business Process Design:
    Governance Repository of Generic Building Blocks Customer Specific Business Processes Integrated Process, Accountabilities, Measures & Interface Agreements Customer Focused Design Method Position Descriptions. Performance Agreements, & SLAs Multiple Views of Customer Updates Used as a basis to create Industry Knowledge, Best Practice, Standards etc. 7th May 2008 Kenneth Mortimer It is critical that processes align upwardly with business artefacts and downwardly with technology infrastructure
  • 10. The major challenges that will need to be faced in the next 5 years/5
    • Good process design starts with the “customer”, internal or external, as represented by this Customer Value Focused Process Design
    7th May 2008 Kenneth Mortimer Customer Value Focused Process Design Customer Values 1. What does the customer value? Outputs 2. Match outputs to customer values Processes 3. Define process to generate outputs Inputs 4. Identify inputs & their source Interface Agreements 7. Create IA for every task flow that passes across an agency level boundary Processes 6. Identify accountable Person and put performance measures on their performance agreement Performance Measures 5. Design performance measures to confirm outputs achieved
  • 11. The major challenges that will need be faced in the next 5 years/4
    • Service Management Case Study:
      • We describe the application of the Business Process Modelling Notation to the redesign of a service management process in a truck dealership in the N.E. US.
      • After the deployment of a new service management system did not lead to the expected efficiency gains we analysed the as-is service process, made suggestions for improvement, and simulated the financial impact of the proposed changes.
      • The as-is and to-be process were documented in BPMN, and a BPMN-based simulation tool was used to quantify the effects of process improvement.
    • Practical Application of this Research:
      • Experience has shown me that there are many practitioners out there that do not balance the theoretical with the practical;
      • At Intouch, there was initial resistance to meddling the AS IS processes given that Intouch knew they were broken, but I persuaded the SMT that we needed to establish a base line so that when we compared the Future State with the AS IS, we could determine the precise nature of the improvements
      • This was important not only for internal confidence building but also for their principal stakeholder the Federal Dept of Health & Ageing to convince them of the extent of the performance improvement. The aim is to win the next round of federal funding.
    7th May 2008 Kenneth Mortimer
  • 12. The role of the Process Architects team in replacing Telstra’s Activation systems/5
    • Without knowing the background for replacing the Activation Systems I would see the Process Architects team fulfilling:
      • Points of Pain
      • Process characteristics: Degrees of Complexity, Process Points of Failure and Causes of Work
      • Identifying Process Diagnostics (Moments of Truth, Break Points, and Business Rules)
      • Determining the effect on the customer and the organization from Process Points of Failure and Causes of Work
      • Identifying opportunities for process improvement
      • Scope of Application; any process, sub-process, service or code
    7th May 2008 Kenneth Mortimer It is critical that processes align upwardly with business artefacts and downwardly with technology infrastructure
  • 13. The value I would add personally in replacing Telstra’s Activation systems/1
    • The principal contribution I would make is one of leadership not only of the Process Architects’ team but also as a member of the wider Telstra IT Transformation - Business Process group;
    • Recently with a much smaller enterprise I completed a comparable task involving the replacement of the company’s ERP system:
      • Complete an end-to-end Future State process and encompassing healthcare, supply chain, and additional processes from the basis of the Current State;
      • Facilitate the determination of a new business model enabling significant business transformation incorporating functions to support health-funding/purchasing/provider; and
      • Project-manage the acquisition of a new ERP aligned with the business processes and business rules of the mapped business processes.
    • This involved not only working with the senior management team but also getting across some of the strategic detail of core processes.
    7th May 2008 Kenneth Mortimer With 29 projects over 19 years, delivering Business Transformation, I will add value to the team, Business Transformation, and Telstra
  • 14. The value I would add personally in replacing Telstra’s Activation systems/2
      • I have developed the adjacent diagram illustrating intertwined & interdependent relationships between business plans, business process models , and ICT infrastructure;
      • I am very focused on improving business practices through process improvement;
      • Business rules govern the execution of processes with a high degree of consistency and accuracy;
      • Outcomes are enhanced if the process is automated through workflow; and
      • A key aspect of this format is the availability of business rules that provide the substance to a specific task within a process.
    7th May 2008 Kenneth Mortimer It is vital to align business, process, and technology
  • 15. The value I would add personally in replacing Telstra’s Activation systems/3
    • I have 19 years experience in analysing, documenting and re-engineering business processes and developing business process frameworks over twenty-nine projects:
        • Complete the Future State Process Model that enabled an open source vendor to offer an ERP/CRM solution that will enable the enterprise to scale their business from $24 million to $70 million over four years;
        • Review the financial, accounting, & reporting processes of a coal mining business with a view of rationalising processes across its two mines and joint v enture with Rio-Tinto ;
        • Analyse and map the core processes and business rules of a health distribution business and identify a new business model enabling significant business transformation and performance improvement;
        • Review the system managing ministerial correspondence and assess its impact on process and people recommending improvements and action plan;
        • Process analysis & mapping to conform with new Federal Child Support legislation and training & coaching members of the process improvement team;
        • Process analysis and establishment of AS IS & TO BE business processes leading to a new Global Consular Management system to assist Australians and other Commonwealth citizens in distress;
        • Process management analysis and establishment of business process framework & governance across multiple revenue and law & order Federal government agencies;
        • Analysed and mapped network management process, captured business rules and developed business process framework of the Public Safety Network across multiple revenue and law & order agencies of the Queensland State Government ;
        • Developed quality assurance framework for whole of government finance business processes analysis and mapping for the Queensland State Government ;
    7th May 2008 Kenneth Mortimer
  • 16. The value I would add personally in replacing Telstra’s Activation systems/4
    • I have led a range of “leading edge”, technology-related projects based on solid process analysis and design:
      • Internet portal deployed in local government ( Brisbane City Council ) in Australasia 1999;
      • New Zealand Parliament ( Office of the Auditor-General ) in to link business processes of substantive audit and parliamentary investigations to the deployment of a national switched network integrated with a range of office automation applications. The time savings were estimated at $2 million annually on the then annual budget of $48 million 1991;
      • Government department ( Conservation ) slashed costs by nearly half of its national network of telecommunications’ assets yet retain comparable bandwidth 1990;
      • In the public or private sectors in New Zealand Department of Conservation to publish an RFI integrating the enterprise’s requirements of telephony, networking and computing requiring the marketplace to form consortia to provide the total solution required 1989;
      • Rationalising and streamlining Bank of New Zealand’s global network of computing and telecommunications’ assets and Telco relationships stretching from New York and London across to Singapore, Hong Kong and Tokyo 1988;
      • 2 Mb/s digital pipe for the Bank of New Zealand linking PABXs in Wellington and Auckland, IBM SNA networks, & shout-down circuits for currency trading 1987; and
      • Aussat-B satellite of an integrated commercial transaction network based on IBM SNA and voice networks for BNZ Australia 1987.
    7th May 2008 Kenneth Mortimer Led “leading edge”, technology-related projects leading to performance improvement
  • 17. The value I would add personally in replacing Telstra’s Activation systems/5
    • Develop Value Proposition
    • Verification of Value Proposition
      • That the value proposition is sound;
      • That it is supported by the proposed structure of the new framework, and
      • That it is supported by the integrated design of process, accountabilities and performance measures
    • Confirmation that the governance model for the new framework is workable, and will be endorsed and supported
    • Approval to put forward a schedule for implementing the new model and phasing out of the current framework
    7th May 2008 Kenneth Mortimer We need to gain from you clear messages that we are on track, where we could improve and that our recommendations are sound
  • 18. The value I would add personally in replacing Telstra’s Activation systems/6
    • Strong, primary focus on our customers through use of end-to-end processes and a Design Method that focuses on customer values;
    • Implement processes that “stick” through focus on customer outcomes, and process performance measures applied directly to position descriptions and performance agreements;
    • Encourage continuous improvement through accountabilities linked to performance measures;
    • Processes that are easier to design as they are sourced from a repository of standard, reusable, and repeatable building blocks; and
    • Simplify the business as process building blocks are reused across
    • the business in multiple processes.
    7th May 2008 Kenneth Mortimer The value proposition must be compelling as it changes the way in which we view our business
  • 19. The value I would add personally in replacing Telstra’s Activation systems/7 7th May 2008 Kenneth Mortimer This is a subset of a piece of work completed for Telecom Corp NZ aimed at reducing the time elapsed from strategy development to deployment; resulting in reduction from 36 to 20 months
  • 20. Questions?
    • Key characteristics of Manager Process Architects:
      • Process Knowledge?
      • Team Leadership?
      • Cultural Fit?
    • Are there any aspects of my responses to these characteristics that you feel that I could add further information?
    • Q&A on my presentation?
    • Discussion regarding my experience/suitability.
    7th May 2008 Kenneth Mortimer

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