3 keys to architecting for change

3 Keys to Architecting for ChangeDecember 14, 2011Sandra Moran Sr. Director, Product MarketingMark DiGirolamo Director, Product Management Copyright © OpenPROCESS MANAGEMENT BUSINESS Text Corporation. All rights reserved.

About OpenTextPublically Traded: NASDAQ (OTEX), TSX (OTC.CN)Headquarters: Waterloo, CanadaRevenue 2011 FYTD: US$1.033 billionCustomers: 46,000+ in 170 countriesEmployees: 4,400 and growingStrategic Alliances: SAP, Microsoft, Oracle BUSINESS PROCESS MANAGEMENT

Recognized by our industry Business Process Enterprise Content Business Process Management Suites Management Suites Enterprise Architecture Analysis Magic Quadrant Q411 Magic Quadrant Q411 Magic Quadrant Q410 Magic Quadrant Q410 Dynamic Case Business Process Enterprise Architecture Business Process Management Management Analysis Management Suite Suites Forrester Wave Q310 Forrester Wave Q410 Forrester Wave Q109 Forrester Wave Q211 BUSINESS PROCESS MANAGEMENT

Government Finance & Insurance Pharma & Healthcare Legal & Business ServicesOil / Gas / Utilities Manufacturing Retail & Distribution Telco & Media BUSINESS PROCESS MANAGEMENT

"Change is inevitable. Progress is optional" ~ Anonymous BUSINESS PROCESS MANAGEMENT

Few companies can maintain innovation Last Year’sRank Company Ranking 1 Apple: For dominating the business landscape, in 101 ways 32 Twitter: For five years of explosive growth that have redefined communication 503 Facebook: For 600 million users, despite Hollywood 14 Nissan: For creating the Leaf, the first mass- market all- electric car5 Groupon: For reinvigorating retail -- and turning down $6 billion.6 Google: For instantly upgrading the search experience 4 7 Dawning Information Industry: For building the worlds fastest supercomputer 8 Netflix: For streaming itself into a $9 billion powerhouse (and crushing Blockbuster) 9 Zynga: For being the $500 million -alpha dog of social gaming10 Epocrates: For giving doctors and nurses instant drug reference BUSINESS PROCESS MANAGEMENT

Disappearing Brands?Source: 24/7 Wall Street BUSINESS PROCESS MANAGEMENT

IT PrioritiesSource: Global Survey – October 2011 BUSINESS PROCESS MANAGEMENT

IT Investment Focus Shifting BUSINESS PROCESS MANAGEMENT

Leveraging New PlatformsSource: Global Survey – October 2011 BUSINESS PROCESS MANAGEMENT

You’re doing it today … the only question is how effectively? BUSINESS PROCESS MANAGEMENT

Organizations use Various Practices andMethodologies that Compete Business Enterprise Process Content Strategic Planning Architecture Architecture Design Lifecycle Line Of Project X – Method BBusiness Project V - Method A Line Of Project K – No MethodBusinessOperations Project Y- Method C Project W - Method CTechnology Project J - Sales Project Z - Project R – Method D Method C Method ACorporate BUSINESS PROCESS MANAGEMENT

Organizations That Are Aligned Change Faster Business Enterprise Process Content Strategic Planning Architecture Architecture Design Lifecycle Line OfBusiness Operating Model Method A Line Of Information Modeling Method ABusiness Measurement Method AOperations StrategicTechnology Planning SalesCorporate BUSINESS PROCESS MANAGEMENT

The Cost of Shortcutting the StrategyStrong emphasis on strategy and program management = significantly lower failure rates… See 10% investment vs. 3% above. Source: Doculabs White Paper: BUSINESS PROCESS MANAGEMENT

1. Adopt a standard methodology BUSINESS PROCESS MANAGEMENT

What is a Methodology A formal, written comprehensive list of organized tasks with supporting documentation on how the tasks should be performed, the data that the team should look for, and the identification of the deliverables from tasks. BUSINESS PROCESS MANAGEMENT

A Great Methodology Should • Written by experts  Too few resources know how to consistently make project succeed • Addresses broadest scope  Allows project team to pick tasks  Minimal overhead • Explains “How To”  What and how to do it • Easy to Use  Brings people to same page, same understanding  Evolves as teams become more experienced • Addresses Sponsorship  Ongoing commitment to make methodology work  Reflects corporate culture BUSINESS PROCESS MANAGEMENT

Developing an Integrated OperationsRoad Map and drive globallyconsistent, industry standard, scalableprocesses across Cisco in support ofbusiness expansion and transformationinitiatives. BUSINESS PROCESS MANAGEMENT

1. Adopt a standard methodology2. Leverage the right initiative BUSINESS PROCESS MANAGEMENT

Rank Potential Initiatives Identify your risk appetite  Is this project linked to strategic initiatives Business Value  Determination of applicable measureable metrics  Cost Savings (Time savings, headcount reductions, etc)  Reduce Cycle Time (i.e. change approvals reduced by 10 days)  Quality Improvements (i.e. 85% decrease in defect rates)  Establish acceptable ROI criteria Project Scope and impact are well understood  Business problem is understood  Organizations impacted are known BUSINESS PROCESS MANAGEMENT

Sample Ranking of Change Initiatives High Risk/High Reward High Project X Project V Project KComplexity Project Y Project W Project J Project R Project Z Low Risk Low High Business Value BUSINESS PROCESS MANAGEMENT

£1 billion change programmetargeted to improve revenueby £500m and reduce costs by£500m BUSINESS PROCESS MANAGEMENT

1. Adopt a standard methodology2. Leverage the right initiative3. Communicate to drive alignment BUSINESS PROCESS MANAGEMENT

Less than 5% of employees understood their company’s business strategy Under 20% of companies were able to execute their business strategies successfullySource: Robert Kaplan and David Norton BUSINESS PROCESS MANAGEMENT

Alignment Strategy Enterprise Context • Why – actionable business strategy Business Context • What we do to achieve desired business outcome Operational Context • How we do it – people, processes, technologies Implementation Context • With what – projects, tasks, activities that deliver outcomes BUSINESS PROCESS MANAGEMENT

Communicate to Business OutcomesBusiness Business Impact Principle Affected PerformanceImpact Strategy Business Metrics AreasGrow Increase sales of Create sales Sales will Sales, Marketing, Multiple product sales multiple products by analytics leverage Customer by customer 15% dashboards to existing data on Relationship present product multiple product Management purchasing buying suggestions tendencies to based on recommend historical buying additional patterns. productsRun Reduce Risk and Develop Financial and Risk Management, Compliance levels, impact of regulatory comprehensive regulatory rules production, implementation time, requirements risk and regulatory and processes accounting, number of audit management must be financial reporting issues strategy consistent across all lines of businessTransform Increase Customer Create a customer Customer facing Customer Service, Decreased customer Satisfaction and environment that applications Sales, Account support costs, decrease service enables easier must support Managers increased satisfaction cost access to account customer quality ratings, information and program Increased multiple allows them to product sales control service BUSINESS PROCESS MANAGEMENT

Start with Desired State…Mind GapsOrganization Required Skills Impact Performance Metrics GapSales High High Revenue Growth New sales dashboard Purchase history dataCustomer Service High High Customer Satisfaction Customer service Support Costs application updatesMarketing Medium Low Revenue Growth BUSINESS PROCESS MANAGEMENT

Coordination Across Multiple Organizations  Requires additional communication & coordination  Identify conflicting strategies, incentives & measures  Examine redundancy  Reduce complexity  Identify gaps within your current business practices BUSINESS PROCESS MANAGEMENT

Changes the Way People Work - Everyday BUSINESS PROCESS MANAGEMENT

Analyzed and consolidated over1500 disparate customer serviceprocesses across 132 countriesdown to 100 global best practicesfor improved consumer support. BUSINESS PROCESS MANAGEMENT

Tools to Architect for Change Demonstration BUSINESS PROCESS MANAGEMENT

Thank you For more information visit us at: www.opentext.bpm.comContact InformationMarketing smoran@opentext.com 248-281-8956 Product mdigirol@opentext.com 415-963-0812 BUSINESS PROCESS MANAGEMENT 32

3 keys to architecting for change

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