ON LEVERAGING BUSINESS
PROCESSES WITH CRITICAL
SUCCESS FACTORS
Andreas Rusnjak & Marwane El Kharbili

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

Initial Situation

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

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

Strategy, CSFs & BPM-Alignment

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

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

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

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

Strategy & Critical Success Factors
i* - A language for Modeling CSFs
CSF Analysis
A l i

i*-Example
i* Example
i* - Notations
Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck

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

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

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

Conclusion

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

Vision/ Mission
Strategies
Tactics Goals
Critical
Success
?
Factors
?
Operational Business Processes
Business/
Performance ROI
IT Alignment
IT-Alignment
CSF-Mapping

Open Points

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

Questions?
Andreas Rusnjak, Marwane El Kharbili, GI 2009 Lübeck