Enterprise BPM Framework

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Every company recognizes the benefits of BPM, but organizations find it difficult to define a holistic BPM strategy because there is no holistic BPM framework available. Therefore we developed the Enterprise BPM framework. This BPM framework will help you: 1.To perform a BPM roadmap assessment and create a BPM roadmap 2.Discover the business issues 3. Explain the required BPM tools & projects 4.Create a financial BPM benefits case. Within this book we will provide the results of the BPM maturity research in more than 1000 companies and the results of BPM roadmap assessments within industry leaders. We will explain why the Operational Excellence group and the ERP CC should work together and why the role of the CPO (Chief Processing Officer) is so important. One opinion of an independent industry analysts is: “The Enterprise BPM framework is interesting because this is the first framework where the different BPM topics are integrated into one framework to create a BPM roadmap... Meer > which can deliver business value
More information can e found at : www.lulu.com/shop/frank-luyckx/enterprise-bpm-roadmap-assessments/paperback/product-20265487.html

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Enterprise BPM Framework

  1. 1. www.ids-scheer.comEnterprise BPM frameworkIDS Scheer NederlandFrank Luyckx, Enterprise BPM solution champ
  2. 2. AgendaARIS BPM frameworkEnterprise BPM framework2211ROI BPM framework33© IDS Scheer AG www.ids-scheer.com
  3. 3. © IDS Scheer AG www.ids-scheer.com
  4. 4. An organization should be a school of fishTo survive they have to react to changes quickly© IDS Scheer AG www.ids-scheer.comTo survive they have to react to changes quicklyGartner :BPM is a structured approach employing methods, policies, metrics,management practices and software tools to measure, synchronize andcontinuously optimize the organizations activities and processes.""BPM governance is a management practice that provides for governanceof a businesss process environment toward the goal of improving agilityand operational performance and revenue.
  5. 5. Misalignment ….• Personal agendas• Politicking• No agreed routemap• No consistent measuresTQMContinuousImprovementCustomerFocusProductivityEmpowermentToo manyindependent initiativesJust in time reskillingsales forceeffectivenesssales forceeffectivenessEDINo ClearLeadershipDisillusionedManagement© IDS Scheer AG www.ids-scheer.com• No consistent measures• No stretch targets• Shop floor disengaged
  6. 6. Business4 Driving forces within an organisationHow can I managemy business results© IDS Scheer AG www.ids-scheer.comOrganizationProcessHow can I managemy business processesHow can I managemy organisationHow can I controlmy business results
  7. 7. 4 Phases of the Process Life Cycle Management© IDS Scheer AG www.ids-scheer.comStrategy = Company Objectives & Business strategyDesign = Functional design & Business analysisImplement = Solution development & Deployment preparationControlling = Operational environment & Daily Maintenance
  8. 8. IDS Business Process Maturity framework to reach Business agilityStrategy Design Implementation ControllingBusiness Transformation Management Business Communications ManagementBusiness Strategy Business ManagementBPM Configuration Management BPM Support ManagementBPM Program Management BPM DesignWe want a new printer in thehome market segmentWhat are the specificationsand logistical requirements ?How should I change the distributioncenters and logistical concepts?Where can I find information of the newprinter and my new responsibilities ?BusinessManagement© IDS Scheer AG www.ids-scheer.comBPM Change management BPM GovernanceBPM Change Program BPM Organizational DesignBPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality ManagementWhat are the objectives forthe organisation ?How should I design the neworganisation?Does the organisation accept the neworganisation structure ?How can I manage the organisationalstandards and responsibilitiesWhat processes & projectsdo I require ?How should the process designlook like ?How should I confige the ICTapplications and processes ?How can I daily support the ICTapplications and processes ?What is the ROI and processcost of this new printer ?How can I improve the printersand logistical infrastructure?Does everybody understand theprinter, applications & processes ?Does the new printer and BPMreaches the objectives ?ProcessManagementOrganisationManagementManagementControl
  9. 9. BPM stakeholdersBPMBPM ImplemImplemBPM DesignBPM DesignBPM StrategyBPM Strategy BPM ControlBPM ControlJurgenJurgenSattlerSattlerCEOCEOFrankFrankVolmerVolmerPaul BijsterPaul BijsterBusinessDevelopmentManagerSteveSteveMCALLISTERMCALLISTERBusinessPlannerJohannaJohannaFeldmanFeldmanITGunnarGunnarOLSSONOLSSONIT SystemCarl BRAUNCarl BRAUNHead ofServiceCenterRobertRobertTHOMSONTHOMSONBusinessBusinessManagementProcess© IDS Scheer AG www.ids-scheer.comVolmerVolmerOperationsOperationsManagerClausClausPettersonPettersonHRMmanagerMonikaMonikaBAUDISCHBAUDISCHFinancialservicesPeterPeterSONNTAGSONNTAGGlobalBusinessOwnerPeterPeterMAYMAYBusinessProcessAnalystITArchitectEtienneEtienneDUCRETDUCRETKnowledgeManagerLindaLindaROSENFELDROSENFELDOrganisationalChangeManagerMarcusMarcusANDERSENANDERSENProjectManager,OperationalExcellenceWolfgangWolfgangBECKERBECKERHead ofBPMOrganizationIT SystemSupportManagerBusinessArchitectProcessManagementOrganisationManagementManagementControl
  10. 10. Strategy Design Implementation ControllingBusinessTransformation CommunicationsManagementBusinessStrategy BusinessManagementBPMConfiguration Management BPM SupportManagementBPMProgram Management BPMDesignBPMproject portfolio Corporate processmodel BPMexecution platform BPMsystem supportBusinessanalysisBalanced score CardProducts& servicesanalysisBusrequirementsmngmtTransformation managementContiniousimprovementsCommunication platformInformation managementBusinessManagementProcessBPM Governance Framework with BPM projects© IDS Scheer AG www.ids-scheer.comBPMChange management BPM GovernanceBPMChange Program BPMOrganizational DesignBPMKnowledge Management BPMObjectives ManagementBPM Financial Management BPMQuality ManagementBPMstakeholdersobjectivesHRM organisational analysisBPMorganisation designBPMprocess ownersBPMchange managementAuthorization conceptBPMstandards& methodsBPMescalation managementBPMproject standardsCorporate processmodelBPMarchitectureBPMexecution platformDocumentation &testing BPMimpactanalysisProcesscosting analysisBPMROI calculationSixsigma projectsBPMqualityanalysisBPMcontent managementBPMtraining managementBPMobjectivesanalysisBPMSLA managementProcessManagementOrganisationManagementManagementControl
  11. 11. A higher BPM maturity level generates benefits for the organisationAlignment ,HarmonisationRationalisation of:Products,Processes,Policies,ProjectsPlatforms,Procedures,© IDS Scheer AG www.ids-scheer.comAs each bird flaps its wings it creates anuplift for the bird following. By flying in aV formation the whole flock adds 71% ofthe flying range than if each bird were tofly alone.Procedures,Planning,Power,Performance,Politics,…… People
  12. 12. BPM Maturity Levels to measure alignment (CMMI, OMG)Integrated E2E processesand E2E process organizationacross the 5 BPM domainsE2E process analysisof both the E2E processesand productsNetworked E2E processeswith business partnersStrategical market agilityand proactive improvementsenabled by piloting innovativenew ideas and technologies3 Standardized4 PredictableBPM domain integrationrequires discipline by thecomplete organizationSuccess depends on BPMBuild a trusted relationshipwith your business partners( suppliers and customers )5 Optimizing© IDS Scheer AG www.ids-scheer.comIndividual process flows.Few activities are described.Individual planningmotivation, efforts andheroicsUnit process disciplineis in place to repeat processesand reduce rework.Basic project managementto track costs, schedule andfunctionality.Corporate E2E processesare standardized by anaccepted methodology.BPM Competence Centermonitors BPM projects - BPMtools - E2E process standardsand products1 Initial2 ManagedSuccess depends onemployee competenciesSuccess depends onmanagement competenciesSuccess depends on BPMcompetencies
  13. 13. Concepts IDS BPM Maturity ModelMaturity levels describes the levels that an organizationmoves through as it evolves from an immatureorganization without any process discipline to a matureorganization where all processes are measured,managed and consistently improved.5 Maturity levelsInitial processes Managed processes Standard processes Predictable processes Optimizing processesBPM Tools can support an organizationto reach a higher BPM maturity level© IDS Scheer AG www.ids-scheer.comA BPM Process areadescribes a cluster of relatedBPM processes within theorganization.16 BPMProcess Area’s
  14. 14. BPM Maturity IndexBPMMaturityLevel 2,42,8 2,0 2,3 2,3BusinessStrategyManagement 2 BusinessManagement 2 BusinessTransformation 4 BusinessCommunicationManagement 1BPMProgramManagement 4 BPMDesign 1 BPMConfigurationManagement 2 BPMSupportManagement 2BPMChangeProgram 2 BPMOrganizationalDesign 2 BPMChangeManagement 1 BPMGovernance 4BPMCostManagement 3 BPMQualityManagement 3 BPMKnowledgeManagement 2 BPMObjectivesManagement 2BPMBPMBPMBPMStrategy Design Implementation Controlling© IDS Scheer AG www.ids-scheer.comThe BPM Maturity Index determines whether the management team should start projects for:1. The Formalisation & Management of the processes and procedures2. The Standarisation & Alignment of the processes and procedures3. The Optimalisation & Integration of the processes and procedures4. The Innovation & Market Agility of the processes and proceduresBPMCostManagement 3 BPMQualityManagement 3 BPMKnowledgeManagement 2 BPMObjectivesManagement 2
  15. 15. Experiences of more than 700 companies with BPM maturity models(INK, EFQM)The average results of the use of BPM maturity concepts are :Growth of Sales (37-77%)Growth operating income (18-48%)Better return on sales (4,4%-8%)© IDS Scheer AG www.ids-scheer.comMore focus on the alignment of the business strategy and the processesStructure for operational management reporting and annual reportingGovernance Structure for managing BPM within organisations
  16. 16. AgendaARIS BPM frameworkEnterprise BPM framework2211ROI BPM framework33© IDS Scheer AG www.ids-scheer.com
  17. 17. ProjectPreperationAs-IsModels DetailedProcess Models(Top/down)Blueprint RealisationRealisationFinalFinalPreparationPreparationProcessScopeE2EScopeE2EModelsFunctionalUnit TestIntegrationTestsUserAcceptanceTestRegressionTestsGo LiveGo Liveand Supportand Support Next Roll OutSupport &ImprovementsImpactassessmentBPM in een ProjectSystemDocumentationScope ModelsSystemScopeOrg.ScopeInterfaceMapBusinessRolesSAPOrg. ModelTestAuthorisationMatrixTestsChange Request Management & Updated Process Models(Project Based)Change Request Mgnt(Governance Based)PublishApprovedBlueprintModelsDevelopEnd User TrainingEnd UserTrainingPortalConceptBusinessprofilestrainingChangemanagementPortal / contentCommunicationUserDocumentation
  18. 18. BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM StrategyBPMBPMCommunicationCommunicationManagementManagementBPMBPMSupportSupportManagementManagementBPM configurationBPM configurationManagement &Management &TestingTestingProcessesProcesses& project& projectManagementManagementconfigurable start page with optionally• a start page image• a start model with clickable buttons• main menu functionsviews on database areconfigured instart modelview on processes(navigation viaprocess assignmenttree)view on organization(navigation viaassignment tree oforganograms)overview of documents(navigation viastructured documentlist)overview of files(navigation viaflat list of files)Does bankmaster alreadyexist?Bankm asterdoes NOTexistBank masterexistsChange of bankm aster required?Change of bankm aster requiredChange ofbank masterNOT requiredDeletion of bankm aster required?Deletion ofbank masterrequiredDeletion ofbank masterNOT requiredBank chainupdate required?Create bankmasterC hange bankmasterDelete bankmasterCreate BankChange BankSet Flag toDelete BankRequest forupdateapprovedSA PR/3SA PR/3BusinessScenario Updatebank masterdataARIS EPC ARIS Test Scenarios TestDirectorTTTest caseJournalapprovedSave journal ascompletetransactionDisplay savedjournalJournal savedascompletetransactionNochangesnecessaryTest case22Test case22TTTest caseJournalapprovedSave journal ascompletetransactionDisplay savedjournalJournal savedascompletetransactionNochangesnecessaryTest case22Test case22TTTest caseJournalapprovedSave journal ascompletetransactionDisplay savedjournalJournal savedascompletetransactionNochangesnecessaryTest case22Test case22TTTest caseSave journal ascompletetransactionDisplay savedjournalJournal savedascompletetransactionNochangesnecessaryTest case22Test case22TTTest caseSave journal ascompletetransactionDisplay savedjournalJournal savedascompletetransactionNochangesnecessaryTest case22Test case22TTTest caseSave journal ascompletetransactionDisplay savedjournalJournal savedascompletetransactionNochangesnecessaryTest case22Test case22TTTest caseSave journalascompletetransactionDisplay savedjournalJournalsavedas completetransactionNo changesnecessaryTest case22Test case22TTTest caseSave journalascompletetransactionDisplay savedjournalJournalsavedas completetransactionNo changesnecessaryTest case22Test case22TTTest caseSave journalascompletetransactionDisplay savedjournalJournalsavedas completetransactionNo changesnecessaryTest case22Test case22Business Process Management platform based on ARIS© IDS Scheer AG www.ids-scheer.comManagementManagementOrganizationOrganizationStandardsStandards& BPO’s& BPO’sTestingTestingBPM KnowledgeBPM KnowledgeManagement &Management &TrainingTrainingManagementManagementBPMBPMGovernanceGovernanceManagementManagementBPM ChangeBPM ChangeManagementManagement &&AuthorizationsAuthorizationsSales ManagerGermanySales RepresentativeGermanySales ManagerGermanyTechnical SpecialistGermanySales RepresentativeAmericasEmployeeSalesSales ManagerSales ManagerAmericasTechnical SpecialistAmericasEmployee SalesGermanyEmployee SalesAmericasRoleRolePositionPositionFrom ARISprocess modelto requ.Spec.From portaltoe-learning offersFrom SAP applicationto ARIS process modelFrom ARIS Process modelto SAP applocationFrom portalto FAQlistsFrom portalto ARIS process worldFrom portal torequirements specificationBank chain updaterequiredBank chainupdate NOTrequiredCreate/changebankdataReadyto informuser of update tobank master dataMaintain bankchains forpartnerSAP R/3SAP R/3JournalapprovedJournalapprovedJournalapprovedJournalapprovedJournalapprovedJournalapproved
  19. 19. BPM Governance Framework with BPM projectsBPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM StrategyBPMBPMCommunicationCommunicationManagementManagementBPMBPMSupportSupportManagementManagementBPM programBPM programmanagementmanagementBusiness &Business &ProductProductManagementManagementBusinessBusinessStrategy &Strategy &BPM objectivesBPM objectivesBusinessBusinessTransformationTransformationManagementManagementBPM Testing &BPM Testing &ConfigurationConfigurationManagementManagementProcessesProcessesDesignDesignManagementManagementInnovation & learningFinancialInternal BusinessPerspectiveHow do we look to ourstockholders?At what must we excel?Can we continue toimprove and create value?How do our customers seeus?StrategyBusinessBusinessModelModelChangesChangesBusinessBusinessProcessesProcessesChangesChangesBusinessBusinessApplicationsApplicationsChangesChangesNew ServicesNew ServicesNew ProductsNew ProductsAcquisitionAcquisitionNew SalesChannelsNew SalesChannelsNew MarketsNew MarketsNew PartnersNew Partners. . .. . .New ProcessesNew ProcessesNewProcess FlowsNewProcess FlowsNewDepartmentsNewDepartmentsNew BusinessFunctionsNew BusinessFunctionsNew UPI‘sNew UPI‘sNewResponsibilitiesNewResponsibilitiesNew InformationAccessNew InformationAccessModificationsModifications CompositionComposition . . .. . .IntegrationIntegrationExtensionsExtensionsStrategyStrategyBPMBPMITITSAPERPUVAprojFase 1 Fase 2Week / MaandCorporate Process Modellevel 1, 2 en 3BPM inkoop (level 4)Implementatie SSM ensynchronisatie ARISProjecten adminstratieFinance, HRM, VastgoedStudenten adminstratieProcess verbeteringen /Faculteit validatie (CM)13 14 15 16 17 18 19 20 21 22Fase 3BPMOpzetten BPM governance23 24 25 26 27 28 29Opzetten BPM conventiesFase 4BPMNBPMNARIS RepositoryEvent-Driven Process ChainWSDL«interface»«wsdlPortType»http://creditsales.soa.umg.ids.com/::CreditSalesService«wsdlOperation»+calculateCreditIncreaseProposal(incalculateCreditIncreaseProposa...«wsdlOperation»+changeCreditApplication(inchangeCreditApplicationRequest:Credit...«wsdlOperation»+checkCustomerPaymentCapacity(incheckCustomerPaymentCapa...«reside»«reside»«reside»«wsdlService»http://creditsales.soa.umg.ids.com/::CreditSalesServiceWSDL«interface»«wsdlPortType»http://creditsales.soa.umg.ids.com/::CreditSalesService«wsdlOperation»+calculateCreditIncreaseProposal(incalculateCreditIncreaseProposa...«wsdlOperation»+changeCreditApplication(inchangeCreditApplicationRequest:Credit...«wsdlOperation»+checkCustomerPaymentCapacity(incheckCustomerPaymentCapa...«reside»«reside»«reside»«wsdlService»http://creditsales.soa.umg.ids.com/::CreditSalesServiceBPELProcess ExecutionBPELBPELProcess ExecutionProcess ExecutionProcess Execution«busi nessClass»Movieti tle:Stringduration:Integer«busi nessClass»Showbegi nni ng:Date =nullnumberOfSoldTickets:Integerschedule(i nbegi nning:Date)cancel()movie():Movi e{query}begi nni ng():Date {query}avai labl eTi ckets():Integer{query}createReservation(in requestedTickets:Integer):ReservationcancelReservations()addReservation(i nreservation:Reservati on)«busi nessClass»MovieTheatername:Stringshows(i nmovi e:Movie):Show[*]{query}«busi nessClass»Theaternumber:IntegerseatCount:Integershows(inmovie:Movi e):Show[*]{query}shows(inmovie:Movi e,i nbegi nning:Date):Show{query}1 1..*1 1..*1*1**1 *1«busi nessClass»ReservationnumberOfReservedTickets:IntegerreservationCode:Integer«create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on*1*1«busi nessClass»Ticket* 1* 1****UMLSoftware Engineering«busi nessClass»Movieti tle:Stringduration:Integer«busi nessClass»Showbegi nni ng:Date =nullnumberOfSoldTickets:Integerschedule(i nbegi nning:Date)cancel()movie():Movi e{query}begi nni ng():Date {query}avai labl eTi ckets():Integer{query}createReservation(in requestedTickets:Integer):ReservationcancelReservations()addReservation(i nreservation:Reservati on)«busi nessClass»MovieTheatername:Stringshows(i nmovi e:Movie):Show[*]{query}«busi nessClass»Theaternumber:IntegerseatCount:Integershows(inmovie:Movi e):Show[*]{query}shows(inmovie:Movi e,i nbegi nning:Date):Show{query}1 1..*1 1..*1*1**1 *1«busi nessClass»ReservationnumberOfReservedTickets:IntegerreservationCode:Integer«create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on*1*1«busi nessClass»Ticket* 1* 1****UML«busi nessClass»Movieti tle:Stringduration:Integer«busi nessClass»Showbegi nni ng:Date =nullnumberOfSoldTickets:Integerschedule(i nbegi nning:Date)cancel()movie():Movi e{query}begi nni ng():Date {query}avai labl eTi ckets():Integer{query}createReservation(in requestedTickets:Integer):ReservationcancelReservations()addReservation(i nreservation:Reservati on)«busi nessClass»MovieTheatername:Stringshows(i nmovi e:Movie):Show[*]{query}«busi nessClass»Theaternumber:IntegerseatCount:Integershows(inmovie:Movi e):Show[*]{query}shows(inmovie:Movi e,i nbegi nning:Date):Show{query}1 1..*1 1..*1*1**1 *1«busi nessClass»ReservationnumberOfReservedTickets:IntegerreservationCode:Integer«create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on*1*1«busi nessClass»Ticket* 1* 1****UMLSoftware EngineeringSoftware EngineeringRulesRules ExecutionRulesRules ExecutionRulesRulesRulesRules ExecutionRules ExecutionBANF_UpdateBANF_IFBANF_UpdateBANF_IFBANF_UpdateBANF_IFBANF_UpdateBANF_IFBANF_UpdateBANF_IFBANF_UpdateBANF_IFconfigurable start page with optionally• a start page image• a start model with clickable buttons• main menu functionsviews on database areconfigured instart modelview on processes(navigation viaprocess assignmenttree)view on organization(navigation viaassignment tree oforganograms)overview of documents(navigation viastructured documentlist)overview of files(navigation viaflat list of files)End userscheckcheckupdateupdatecreatemodelcreatemodeltransfertransferapprovedapprovedDevelopment databaseProductiondatabaseArchive databasereleasedreleasedcheckcheckapprovedapprovedtransfertransfercheckcheckcheckcheckReview databaseRCM – workflowModellingRCM-scriptsDatabase Synchronisation andWeb publication16a5432 6b 810© IDS Scheer AG www.ids-scheer.comBPM ChangeBPM ChangeProgramProgramManagementManagementBPM KPI’sBPM KPI’sManagementManagement& SLA’s& SLA’sBPMBPMFinancialFinancialManagementManagementOrganizationOrganizationStandardsStandards& Ownership& OwnershipQA ManagementQA Managementfor BPMfor BPMimprovementsimprovementsControlMonitoring the newprocessDefineARIS ProcessModels, Objectives,Project descriptionAnalyseCalculations &comparisons ofhistorical dataImproveWhat if scenariosand definition oftasksMeasureARIS BusinessOptimizerScenariosControlMonitoring the newprocessDefineARIS ProcessModels, Objectives,Project descriptionAnalyseCalculations &comparisons ofhistorical dataImproveWhat if scenariosand definition oftasksMeasureARIS BusinessOptimizerScenariosManagementManagementBPM trainingBPM training& knowledge& knowledgeManagementManagementManagementManagementBPMBPMGovernanceGovernanceManagementManagementChangeChangeManagementManagement &&AuthorizationsAuthorizationsStructural Relations between Process Management RolesStructural Relations between Process Management RolesProcess Coordinator(Country 2)Head ofGroup Process MgmtHead ofGroup Process MgmtProcess Owner(e.g. Retail Loan)…Process Coordinator(Retail Loan)Process Owner(e.g. …)Process Owner(e.g.Retail Loan)…Process Owner(e.g. …)Process Owner(e.g. Retail Loan)…Process Owner(e.g. …)Process Owner(e.g. Retail Loan)…Process Owner(e.g. …)Process Owner(e.g. Retail Loan)…Process Owner(e.g. …)…GroupCompetenceCoachesGroup CompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesCompetenceCoachesHead of PM(Country 1)Head of PM(Country 1)Head of PM(Country 2)Head of PM(Country 2)Head of PM(Country …)Head of PM(Country …)Head of PM(Country …)Head of PM(Country …)Head of PM(Country n)Head of PM(Country n)MethodologyViewBusinessViewMethodologyViewMethodologyViewBusinessViewBusinessView…Process Owner(central Credit BO)Process Owner(e.g. …)Process Owner(e.g. …)Process Owner(e.g. …)Process Owner(e.g. …)Process Owner(e.g. …)EXAMPLEBusinessBusinessProcessProcess ExpertsExperts5 Year1 Year2 Year3 Year4 Year5 totals7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.35633.609.224 67.218.447 100.827.671 120.993.205 134.436.895 457.085.44326.450.524 65.643.533 99.252.757 119.418.291 132.861.98126.450.524 92.094.057 191.346.814 310.765.106 443.627.08726.450.524 57.582.047 76.371.774 80.603.945 78.664.959CummulativeDCF 26.450.524 84.032.571 160.404.344 241.008.290 319.673.248WACC=14%NPV 319.673.248ROI 3296,29%PBP 0,15DiscountedCashFlowsTotal costTotalBenefitsNetCashFlow(NCF)CummulativeNCFBenefitperSolutionBPMITAMERPGRCCPMBPM ITAM ERP GRC CPMBenefitsperPhaseDesignStrategyControllingImplementStrategy DesignImplementation ControllingCostsperPhaseStrategyDesignImplementationControllingStrategy Design Implementation ControllingCostsperSolutionBPMITAMERPGRCCPMBPM ITAM ERP GRC CPMBPMGovernanceOpzetten BPM governancebasis omgevingUitwerking van het BPMGovernance ConceptImplementatie van het BPMGovernance ConceptKPISet-up PPM envrionmentLink KPI to Process modelFigure 12-2Figure 12-2withoutchange managementHartfacts(measurable)Softfacts(limitedmes.)CultureManagementEmployeesKnowledgeOrganizationProcessesStrategyITScope ofprojectswithchange managementScope ofprojectswithoutchange managementHartfacts(measurable)Softfacts(limitedmes.)CultureManagementEmployeesKnowledgeOrganizationProcessesStrategyITScope ofprojectswithchange managementScope ofprojectsProcess Execution…Process Execution…Process Execution…Process Execution…Software Engineering…Software Engineering…Software Engineering…Rules Execution…Rules Execution…Rules Execution…Rules Execution……ProcessStructure &LevelsStandards,Conventions,Handbook,GuidelinesToolsProceduresRolesResponsibilitiesSteeringCommitteeDifferent SAP & BPM Projects : Blueprint, Realization and SupportDifferent SAP & BPM Projects : Blueprint, Realization and SupportCommonProcessRepositoryBPMApproach &StandardsBPMOrganisationStandardCorporateProcess ModelStandardCorporateProcess ModelBPM Im plem entationBPMIm plem entationBPM DesignBPM DesignBPM StrategyBPM StrategyBP MCh angeBPM Ch angeProgram &Program &Cap ability manag ementCap ability manag ementBP MSco pe &BPM Sco pe&BP MprogramBPM programmanagemen tma nagemen tBu sin ess &Bu sin ess &Prod uctrequ irementsProd uctrequ irementsManage men tManagemen tBP MCo st&BPM Co st&Vend orVend ormanagemen tma nagemen tBus ine ssBus ines sStrate gyStrateg y&& KP IKP I’’ssBusines sBusinessTransformationTransformationma nagemen tma nagementQM stan dardsQMs tan dardsfo rBP Mfo rBP Mimprove me ntsimprove me ntsBPMB PM KP IKPI’’ssPerforma nceP erfo rman ce& SLA& SLA ’’ssBPM ControllingBPMControllingBPMB PMSupp ortS upp ortMan agementMan agementOrgan izationOrgan izationStandard sStandards& Ownership& OwnershipBPM Tools &BPM Tools &Con figurationCon figuratio nStandardsStandardsBPM trainingBPM training& knowle dge& knowle dgeMan agementMan agementProcessProcess& Project& ProjectStandard sStandardsBPMB PMGov ernanceGove rn anceMan agementMan agementChan ge Ma nagementChan ge Man agementStandardsStandards& Resp onsibities& Resp onsibitiesB PMB PMOperationalOperatio nalman agementmana gementBPM CCTCCe xpe rtCo nsu ltan tBPM CC exp ertsBPM and PDSAPBPM CCe xpertsBPM an d PD SAPBPM CCGRCex pertCons ulta ntBPM CCBPM tra in in g expe rtBPM ch ang e mana gerBPM mod elersBPM ad min istratorBPM SAP PD expe rtBPM CPM ex pertBPM GRCex pertBPM QAe xpertBPM CCBPM CCh eadCPO = ChiefPro ces sOffice rBPM EAexp ertBPM arch itectTechnology (basi s, programm ing, etc. .. )GR Ct eam (cont rol s, authorizat ion, etc…)Change, C omm unicati onand Trai ning teamnt egrat ion &Docum entat ionTechnology (basi s, programm ing, etc. .. )GR Ct eam (cont rol s, authorizat ion, etc…)Change, C omm unicati onand Trai ning teamOTC e.g . Process X e.g.Project Managem entPT Pe. g.Technology (basi s, programm ing, etc. .. )GR Ct eam (cont rol s, authorizat ion, etc )Change, C omm unicati onand Trai ning teamI ntegration & Docum entat ion &SupportChi ef Inform ation Of fi cerERPCompetenceCenter ManagerERP CompetenceCenter ManagerSAP H elpd eskSAP H elpd eskSAP con sultantsSAP con sultantsSAP testingSAP testingS AP Basi ssupp ortS AP Basi ssupp ortS AP ABA P SupportS AP ABA P SupportS AP SSM supportS AP SSM supportSAP A utho ri sati on supportSAP A utho ri sati on supportSAP D ocumenta ti onsup portSAP D ocumenta ti onsup portSAP T rai ning suppo rtSAP T rai ning suppo rtBusines sArchitec tInformatio nArchite ctApp lication ArchitectInfrastructuur Arc hitectRisk &Co ntro lArchitectQAma nage rOrga nisa tion architectHRM/ Commu nica tionBusines sUsersL ib ra rian(G)BPO= (Glob al)BPO(G)BPM= (Glo bal)BPMBusinessOwnersARISQAARIS Modeller/BPM CC Expertupdatemodelupdatemodel transfertransferrejectedrejected Archive databasearchivedarchivedrejectedrejected(G)BPO and/orArchitecturalOwner79
  20. 20. Alignment of multiple views in ARISProcesses RFCProcess ViewsBPM targets Business RFCProjectsProducts & ServicesProcesses© IDS Scheer AG www.ids-scheer.comProcesses infoProcesses StatusFunctionsProcess AnalysisOrganizationCost BPM KPI’sObjectives Systems / tools
  21. 21. Evolution of Business Modeling to Business Process ManagementBusinessSemanticsBusiness Analysis ModelingOperational BPM PlatformBusiness Strategy Modeling© IDS Scheer AG www.ids-scheer.comBusinessSemanticsFlowchartsCorporate Process ModelTimeBusiness Strategy ModelingC re at ec u s tom e rord erL ega c y A pp XC u s tom erorde rc re at e dC us to m erord erre c ei ve dS al es e m pl oy eeThr oug hp ut tim eO rd er pro c es s i ngW IR i s k of m ul ti p lec u s t e nt ri es
  22. 22. Publication© IDS Scheer AG www.ids-scheer.com
  23. 23. AgendaARIS BPM frameworkEnterprise BPM framework2211ROI BPM framework33© IDS Scheer AG www.ids-scheer.com
  24. 24. © IDS Scheer AG www.ids-scheer.com
  25. 25. Strategic Alignment is a primary driver40%50%60%70%For which of the following reasons did you implement a BPM solution?(Multiple responses allowed)Why start with BPM ?© IDS Scheer AG www.ids-scheer.com62% 58% 51% 43%51% 36% 31%12%0%10%20%30%40%Improveclarity andagreement ontrue businessdriversAlign day-to-dayactivities tobusinessstrategyAlloweffectivemanagementinterventionAchievespeed andaccuracy ofmanagementreportsReducecycle timeof planningandreportingIdentify andeliminatenon-valueadd activitiesand reportingFacilitateSOX ongoingcomplianceEnhanceproductivityin day-to-dayactivitiesStrategy alignment EfficiencySource: Seventh Annual Survey of Technology Issues for Financial Executives – 2005.
  26. 26. High level financial business case for BPM projectsControllingControllingImplementationImplementationDesignDesignStrategyStrategyBPM communicationsBPM communicationsManagementManagementReduce Operational costsReduce Operational costsBy allignment of the business usersBy allignment of the business usersand business process informationand business process informationBPM SupportBPM SupportManagementManagementReduce BPM costsReduce BPM costsBPM Scope & BPM programBPM Scope & BPM programManagementManagementReduce Project costsReduce Project costsBusiness &Business &Product ManagementProduct ManagementImprove RevenueImprove RevenueBy go to market alignment of businessBy go to market alignment of businessrequirements and market segmentsrequirements and market segmentsBusiness Strategy &Business Strategy &BPM objectivesBPM objectivesImprove RevenueImprove RevenueBy company focus on profitableBy company focus on profitablemarket segments & market strategymarket segments & market strategyBusiness TransformationBusiness TransformationManagementManagementReduce Operational costsReduce Operational costsBy effective execution of theBy effective execution of thebusiness processes and planningbusiness processes and planningBPM Tools & ConfigurationBPM Tools & ConfigurationStandardsStandardsReduce Project costsReduce Project costsProcess & ProjectProcess & ProjectStandardsStandardsReduce Project costsReduce Project costs© IDS Scheer AG www.ids-scheer.comBPM Change Program &BPM Change Program &Objectives ManagementObjectives ManagementReduce HRM costsReduce HRM costsBy allignment of HRM / resourceBy allignment of HRM / resourceplanning and company objectivesplanning and company objectivesBy efficient support management ofBy efficient support management ofthe BPM business processesthe BPM business processesBy optimalisation of the companyBy optimalisation of the companyproject portfolioproject portfolioBPM KPI ManagementBPM KPI Management& SLA’s& SLA’sReduce Operational costsReduce Operational costsBy management on the BPM KPIBy management on the BPM KPIperformance of the processesperformance of the processesBPM FinancialBPM FinancialManagementManagementReduce Operational costsReduce Operational costsBy controling the ROI of ProjectsBy controling the ROI of Projectsand company costs (ABC)and company costs (ABC)OrganizationOrganization StandardsStandards& Ownership& OwnershipReduce Project costsReduce Project costsBy efficient design and utilizationBy efficient design and utilizationof the process organisationof the process organisationQM standards for BPMQM standards for BPMImprovementsImprovementsReduce Operational costsReduce Operational costsBy optimalisation of theBy optimalisation of thebusiness processesbusiness processesBy efficient configuration andBy efficient configuration andvalidation of the processesvalidation of the processesBPM training & knowledgeBPM training & knowledgeManagementManagementReduce Operational costsReduce Operational costsBy improvements of the BPMBy improvements of the BPMcompetencies of the employeescompetencies of the employeesBy efficient design and utilizationBy efficient design and utilizationof the business processesof the business processesBPM GovernanceBPM GovernanceManagementManagementReduce BPM costsReduce BPM costsBy effcient management of the BPMBy effcient management of the BPMorganisation and the BPM standardsorganisation and the BPM standardsChange ManagementChange Management &&AuthorizationsAuthorizationsReduce Project costsReduce Project costsBy efficient implementation of theBy efficient implementation of thejob descriptions and authorizationsjob descriptions and authorizations
  27. 27. BPM Business Value MapBusiness StrategyManagement 70.974 Business Management 85.169 Business Transformation 184.400 Business Communication Management 147.520BPM Program Management 38.400 BPM Design 38.400 BPM Configuration Management 25.600 BPM Support Management 4.750BPM Change Program 44.820 BPM Organizational Design 12.800 BPM Change Management 12.800 BPM Governance 3.800BPM Financial Management 73.760 BPM QualityManagement 442.560 BPM Knowledge Management 221.280 BPM Objectives Management 73.760Total 227.954 Total 578.929 Total 444.080 Total 229.830 Total 1.480.793BPMBPMBPMBPMStrategy Design Implementation Controlling© IDS Scheer AG www.ids-scheer.comThe financial calculations are based on the following financial key figures;RevenueYearly logistic / operational costsYearly Employee costsProfit marginYearly cost of project portfolioYearly average BPM project costsYearly average BPM maintenance costs
  28. 28. 5 Year 1 Year 2 Year 3 Year 4 Year 5 totals7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.3562.231.651 4.463.301 6.694.952 8.033.942 8.926.602 30.350.447-4.927.050 2.888.387 5.120.038 6.459.028 7.351.688Total costTotal BenefitsNet Cash Flow (NCF)Benefit per SolutionBPMITAMGRCCPMCAFBPM ITAM CAF GRC CPMBenefits per PhaseDesignStrategyControllingImplementStrategy DesignImplementation ControllingThe benefits of a Holistic BPM StrategyIn what area will I benefit the most?When will I reach the benefits?© IDS Scheer AG www.ids-scheer.com-4.927.050 -2.038.663 3.081.375 9.540.403 16.892.091-4.927.050 2.533.673 3.939.703 4.359.660 4.352.789Cummulative DCF -4.927.050 -2.393.377 1.546.326 5.905.986 10.258.775WACC =14%NPV 10.258.775ROI 125,51%PBP 2,22Discounted Cash FlowsCummulative NCFCosts per PhaseDesignStrategyImplementControllingStrategy Design Implementation ControllingCosts per SolutionBPMITAMGRCCPMCAFBPM ITAM CAF GRC CPMIn what area should I invest?When should I invest?Support of the Central Management Team and the CPO is required.Support of the Central Management Team and the CPO is required.ROI calculation can be made based on annual report and benchmark valuesROI calculation can be made based on annual report and benchmark values
  29. 29. McKinsey Global Survey750+ CEOs750+ CEOs agree that Business Model Innovation and Strategic Flexibility /Business Agility are top priorities and Critical SuccessFactors.© IDS Scheer AG www.ids-scheer.com
  30. 30. Any questions?Any questions?Frank LuyckxT: +31(0)6 433 642 32© IDS Scheer AG www.ids-scheer.comT: +31(0)6 433 642 32Frank.luyckx@ids-scheer.com

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