Agility Matrix Explained

The Agility Matrix Explained Clayton Costa Enterprise Solutions Executive

Background…
When I started to work with the BPM set of tools, I first tried to understand WHY ANYONE would EVER invest on such tools
The following slides are my best understanding about this particular subject.

From the basis
To start, let’s assume one simple axiom: “ Every single company is made of business processes.”
And some contextual information:
All the – established – companies already have some sort of business process automation solution in place (e.g.: Packaged Applications like ERP, CRM)
Many companies have started “Business Process Initiatives”, like Six-Sigma, Kaisen, Toyota-System etc.
Regulations in general are “process-aware” by nature (SOX, ISO9000 etc.)

BPM toolsets
Some “common sense” about BPM
“ BPM is about agility”
BPMS’s are tools to implement “continuous improvement”
“ BPM software is able to implement an ‘independent process layer’, out of code”
And so on… (lots of “common sense” around the IT world!)
So, BPM might be just YARADT (“yet another rapid application development tool”, like 4GL, CASE, Code Generators, OOP etc.)

What’s really BPM About? AT FIRST, A MANAGEMENT DISCIPLINE ! A SET of TECHNOLOGIES to support the MANAGEMENT & AUTOMATION of such initiative makes a lot of sense! That focus on CONTINUOUS IMPROVEMENT

But… WHEN should I use these tools??? I believe that the answer to this question lies on the way the process portfolio of one specific company is distributed across two dimensions…

The Agility Matrix Level of uniqueness of a business process Specific Standard Stable Volatile Life Cycle of the business process

Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt.

Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. More CRITICAL TO THE BUSINESS

The Matrix is UNIQUE Manufacturing? Professional Services? … there might be some patterns per industry… While the full process portfolio must be very unique…

The Make-Or-Buy decision when automating… Hum… Standard and never changes? Someone must have a ready solution to this! I want a Packaged App (ERP)!!! Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process

Hum… Always changing, but for everybody at the same time? I want to buy a service to keep this up-to-date! Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process

Ops… It’s a process that just relates to my company? Let’s do some code, once it’s not going to change very often… Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process

Now what? Pieces of these – very important – processes are already automated by packaged apps, but I often need to adapt them to the market req’s. Is that what BPM is about? Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process

Make-or-Buy? What about a new packaged app?
Packaged apps are made around the concept of “liquidity of functionalities” – that can’t support differentiation
Partial automation can decrease the overall productivity
Then…
?

A tool to automate “agile processes” needs to…
Leverage all the current assets
“ Orchestration” / “Process Integration”
Be compatible with the life cycle of the agile processes
Make it possible to create a continuous improvement cycle
!

A Collection of Enabling Technologies New architectural elements of a more modern – and flexible - business process automation infrastructure Driven by these requirements, many solutions arose…

The trick… Now, the trick lies in choosing the right elements – and defining the best architecture to your specific requirements! If you don’t do so, the risk is that you’re going to buy just “YARADT”…

BTW, Better Business Processes usually means…
Smaller cycle-times
Hand-over automation
“ Ready-to –Work” task delivery
Resource usage optimization
Case prioritization;
Task assignment by profile (skill, experience etc.)
Decreased latency (BE)
Decreased Time-to-Market
Lower time-to-solution
Independent Process Layer
Business Rules
Process Re-Utilization
Increased capacity
Resource Usage Optimization
Process Visibility (Audit Tracks & BAM)
SLA Enforcement & Management
Compliance Enforcement & Management
Costs Revenues Customer Services Profitability!

That’s all Folks!

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Agility Matrix Explained

by Clayton Costa on Aug 09, 2008

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Agility Matrix Explained — Presentation Transcript