On Leveraging Business processes with Critical Success Factors

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  • 1. ON LEVERAGING BUSINESS PROCESSES WITH CRITICAL SUCCESS FACTORS Andreas Rusnjak & Marwane El Kharbili
  • 2. Outline  eCommerce  Some Basics  Strategy, Critical Success Factors  BPM-Alignment  Strategy and Critical S S d C i i l Success F Factors  CSF-Community Example  Enhancing CSF via KPIs  Hierarchical Scenario  Conclusion  Discussion (Open Points/Shortcomings/upcoming work) Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 3. Initial Situation
  • 4. eCommerce  Sales channel with highest growth dynamics  Rapid changing market  A lot of new-coming companies entering this market  Already involved companies extend their presence  Increasing user-influence since Web 2.0  Trend to mobile Business Models  Very distinct consumer rights To stay competitive companies depends on effective control and design by executive management Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 5. Big Picture IT and New Economy Friction L Strategy & Tactics Losses Transformation Business Processes of company Information & Communication Systems Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 6. Strategy, CSFs & BPM-Alignment
  • 7. Strategy  Strategy is "the determination of the basic long-term goals and the objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals" (Chandler 1962)  Strategy helps to realize the vision of a company and building goals  Via strategic implementation and modeling goals as well as processes are optimized, established or removed Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 8. Critical Success Factors (CSFs) "CSFs factors are elements, determinants or conditions which are having a decisive influence to success of entrepreneurial actions"  Allowing rational and transparent decisions in the strategic context  Essential long-term determinants for company success  Different kind of CSFs (General, Branch, Specific, …) ( , , p , )  Their appliance can  decide about strengths, chances, competitive advantages g p g  avoid many problems and risks Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 9. BPM Alignment  Business Processes are "ENABLER" of companies success  Operational activities guided and/or executed by processes  An alignment between strategy and processes is critical  Overall enterprise efficiency as a result  CSFs need to be measured based on processes execution information   Alignment between CSFs and processes can be measured Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 10. Competition Government Technology gy Shareholder Employees Company Supplier Society Customers Management M Influence Vision Environment Mission Influence Strategy Critical Success Factors (CSF) Influence General| B G l| Branch| Specific| etc. h| S ifi | Goals Business Processes Success Influence Factors of a company
  • 11. Strategy & Critical Success Factors i* - A language for Modeling CSFs CSF Analysis A l i
  • 12. i*-Example i* Example i* - Notations Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 13. CSF Community Example CSF-Community  Customer Proximity and especially Online Communities are CSFs  i* - a modeling f d li framework fk for strategic dependencies  Community as a CSF i shown i i* C it is h in with a "Strategic CSF-Triangle"  The triangle visualizes a dependency between product information and visits to a online community y Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 14. Enhancing CSFs via KPIs You can't manage it if you can't measure it!  Possible goal-formulation for the online- community can be: "The Online Community must go online until 01.05.2010 with a budget of 300.000 EUR. The features must need the standards user profile (creation, editing, and deletion), friends lists, chat- and messaging-system, common group- functions as well as a recommendation-system, an invitation- function and links to the shop/ product pages"   Three parameters of implementation are labeled: Time, E l b l d Ti Expenses and F t d Features  Additional KPIs should be possible Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 15. Hierarchical Scenario CEO Profiles: 10.000 Page Views: 1.000.000 Budget: 100.000 EUR Implementation Time: 24 Months CSF New Customers: 1.000 CSF Performance Parameter (IP) Quality: Feature-List Online Community Conversion-Rate: 2% Parameter (SPP) Turnover: 100.000 EUR Budget: 200.000 EUR COO CFO Budget/ Costs: 300 000 EUR 300.000 CSF-Manager Head of IT Head of Marketing Head of Sales Time: 18 Months Time: 12 Months Time: 12 Months Quality: Feature List i Profiles: 10.000 Turnover: 100.000 EUR Budget: 100.000 EUR Page Views: 1.000.000 Budget: 50.000 EUR New Customers: 1.000 Conversion-Rate: 2% Budget: 150.000 EUR Processes Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 16. Conclusion
  • 17. Conclusion  Gap Between Strategy and Operational Layers  Explicit and Centralized Control of CSFs  CSF Modeling Language  A Method for CSF Management  Next: A Meta-Model for CSF Management  Ultimate Goal: Aligning CSFs and Business Processes g g Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 18. Vision/ Mission Strategies Tactics Goals Critical Success ? Factors ? Operational Business Processes Business/ Performance ROI IT Alignment IT-Alignment CSF-Mapping
  • 19. Open Points
  • 20. Open Points  Extended i* Notation with CSF Modeling  Extended BP Modeling Notation with CSF Modeling  Quantifying CSFs using Metrics  Linking CSFs and Processes using Business Goals Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck
  • 21. Questions? Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck