BPM Business Value Patterns

Jürgen Kress | Oracle Matthias Ziegler | Accenture
BPM Business Value Patterns

Agenda
Introduction
BPM Business Value
Case Studies

Who are we? Dr. Matthias Ziegler is a senior manager and master technology architect at Accenture. He leads the BPM Automation group in Austria, Switzerland and Germany and the Architecture Innovation team, which pioneers emerging technologies at our clients. Jürgen Kress responsible for SOA & BPM partner adoption at Oracle EMEA. He is the founder of the Oracle SOA & BPM Partner Community and the global Partner Advisory Council with more than 3000 members from all over the world. Jürgen hosts the community with monthly newsletters, webcasts and quarterly events. Supplemented by many web 2.0 tools like discussion forums, online communities, blogs, twitter and wikis.

Who are you?
your role?
developer, architect, project manager?
your use of BPM?
in production, building, planned?
your approach to BPM business value?
defined upfront, realised, measured & confirmed?

What do we talk about?
BPM Business Value
when does BPM make sense?
how to identify and deliver high value?
how did others create value with BPM?

CIO Focus Area: Improving Business Processes Source: “Leading in Times of Transition: The 2010 CIO Agenda” , Gartner, January 2010

BPM Umfrage 2010
In welcher Branche ist Ihr Unternehmen tätig?
Quelle: Business Technology 2010

BPM Umfrage 2010
Welche Rolle haben Sie in Ihrem Unternehmen?

BPM Umfrage 2010
Wie wichtig ist Ihnen der Roundtrip zwischen Prozessmodell und ausführbarem Prozess?

BPM Umfrage 2010
Welche Gründe sehen Sie als maßgeblich für die Einführung von BPM an?
Wichtig Nicht wichtig

BPM Umfrage 2010
Welche Werkzeuge sehen Sie im Kontext einer BPM-Initiative als wichtig an?
Wichtig Nicht wichtig

Typical Business Triggers for BPM
Examples for typical business triggers are : growth & innovation, standardization, compliance & safety, mergers & acquisitions, cost reduction, risk management, emerging competition, major business or IT transformations, major systems implementations (e.g. ERP), next generation process automation, or the decision to establish a BPM capability.

What makes the difference? Transparency Agility Compliance Quality Efficiency Networking Integration Reasons for BPM failure Desired outcomes with BPM Faulty strategic thinking Faulty strategic thinking
Not aligned with business strategy and goals
Not clear on BPM capability needs
No or poor prioritization of BPM improvement initiatives
Inadequate implementation focus
Unclear how to execute on business strategy
No ability to implement independent BPM initiatives in a coordinated and structured manner
No managed BPM project portfolio
Inadequate or fragmented BPM tool infrastructure
No or poor requirements for business process modeling, analysis, execution, and controlling
People
No or poor understanding of required BPM skills
Misalignment between organization and processes
Taking the eye off the ball
Failure to align processes and BPM approach with changing business or go to market model
Failure to identify high priority process areas
Slow in addressing critical areas due to late recognition

Agenda
Introduction
BPM Business Value
Case Studies

BPM Values Quality Efficiency Agility Networking Transparency Integration Compliance Queensland University of Technology, Accenture: Study on the value of BPM, Brisbane, London, Philadelphia 2011. Internal Focus External Focus

Chose a systematic approach to target and deliver BPM business value Identify Process Priorities High Level Perf. Gap Analysis (for critical processes) Value/Issue Tree Process Impact Matrix Capability Assessment Model High Performance Business Research / Industry Trends Business Strategy Industry on a Page Foundation for Delivery of Value on all types of engagement, e.g.: Transparent, efficient and agile processes Next generation process automation Accelerated core system implementation BPM application configuration

Understand the value drivers in your industry and the performance goals of your organization Adapt and Align Value Drivers Based on the Company Needs Provides Industry Standards and Baseline Stay ahead of the Competition with High Performance Trends Industry on a Page High Performance trends Company Strategy By decomposing the Value drivers and determining the relevant Performance dimensions, detailed process level goals are identified as an input into the Process Impact Matrix

Focus on immediate impact and high value process improvements Process Impact Matrix Capability Assessment Model Key Impact Processes Assessing which processes are most critical relative to the organization’s key value drivers Gaps in the level of maturity in the processes areas are identified to deem areas of improvement Level 3 processes mapped and act as an input into the process areas that need to be assessed The Process Impact Matrix (PIM) identifies high impact processes, while the Capability Assessment Model (CAM) explains improvement options.

Identify high impact processes and apply the right process governance and improvement methods Not all processes have the same strategic impact (routine vs. strategic) or the same type of standardization need (local vs. global). Based on this evaluation, the segmentation matrix can be developed showing the relative positioning of the processes to each other.

Assess existing BPM capabilities and capture target levels required to support the organizations goals Example

Quantify expected benefits based on BPM Values
Reduce Risk
Improve Process Visibility
Increase Revenue
Increase Stakeholder Value
Increase Customer Acquisition
Increase Market Share
Reduce Costs
Increase Productivity
Increase Profitability
Reduce Process Complexity
Improve Consistency
Improve Customer Satisfaction
Reduce Risk
Improve Compliance
Improve Customer Experience
Improve Partner Collaboration
Improve Employee performance
Increase Market Focus
Transparency enables all other BPM Benefits Transparency Agility Compliance Quality Efficiency Networking Integration

This approach results in a roadmap for BPM that creates value from the beginning BPM Maturity Assessment: What BPM Capabilities do we need with which priority? PIM/CAM: What are the high impact low maturity processes? Project Priorities BPM Roadmap: Focused capability building with highest immediate value

Agenda
Introduction
BPM Business Value
Case Studies

Reduce the number of returned product as part of the repair process
Lesson learned
Evolution in technology
Results Leading retail company in South Europe and South America
Benefits & Outcomes
Redcue replacements & returns
Reduction repair cost
Increase customer satisfaction
Company Overview Business Challenge Case study: BPM Business Case for a retail company  Process governance & visibility

Track the lead time of a citizen request
Lesson learned
Process flexibility & empower knowledge worker
Case management
Results Public Sector Justice ministry
Benefits & Outcomes
Responsible person & process status
Understand required resources
Customer satisfaction
Company Overview Business Challenge Case study: BPM Business Case for Justice Ministry  Process visibility

Questions & Contact Jürgen Kress Oracle EMEA SOA & BPM Partner Adoption Tel. +49 89 1430-1479 E-Mail: juergen.kress@oracle.com Dr. Matthias Ziegler Accenture Senior Manager & Master Technology Architect Tel. +49 (89) 93081-68792 E-Mail: matthias.ziegler@accenture.com

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BPM Business Value Patterns

by Jürgen Kress

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