Reverse interaction modelling

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Designing a better business by designing better interactions with customers, partners and employees. Outline of the basic methodology.

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Reverse interaction modelling

  1. 1. Reverse Interaction Modelling™ designing a better business by designing better interactions Marc Buyens marc.buyens@xpragma.com www.xpragma Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner’s official approval. Such approvals may be requested via e-mail — quote.requests@gartner.com.
  2. 2. contents a bit of history – e-business strategy development – Business Interaction Management Reverse Interaction Modelling (RIM) – RIM objectives – basic principles – the Europrofiles case
  3. 3. a bit of history e-business strategy development
  4. 4. the basic model e-business e-business process process business business vision vision change change processes processes opportunities opportunities business business business business e-business e-business reality reality objectives objectives principles principles selected selected opportunities opportunities
  5. 5. process change methods Intensification: improving processes to serve current customers better Extension: using strong processes to enter new markets Augmentation: expanding processes to provide additional services to current customers Conversion: taking a process that you perform well and performing it as a service for other companies Innovation: applying processes that you perform well to create and deliver different goods or services Diversification: creating new processes to deliver new goods or services Michael Hammer, Beyond Reengineering, How the Process-Centred Organization is Changing Our Work and Our Lives
  6. 6. process change methods no, not really my piece of cake...
  7. 7. a bit of history Business Interaction Management
  8. 8. what is a business process? “A business process is a set of coordinated tasks and activities, conducted by both people and equipment, that will lead to accomplishing a specific organizational goal. Business process management (BPM) is a systematic approach to improving those processes.” www.SearchCIO.com
  9. 9. what is a business process? “At its most generic, any set of activities performed by a business that is initiated by an event, transforms information, materials or business commitments, and produces an output. Value chains and large-scale business processes produce outputs that are valued by customers. Other processes generate outputs that are valued by other processes.” www.BPTrends.com
  10. 10. what is a business process? “A business process is how an organisation does its work — the set of activities it pursues to accomplish a particular objective for a particular customer, either internal or external.” Thomas H. Davenport
  11. 11. a business process... what does it LOOK like?
  12. 12. what does it look like? http://xpdl.org/wiki/Wiki.jsp?page=TroubleTicketScenario
  13. 13. what does it look like? IDS Scheer AG, ARIS
  14. 14. what does it look like? Metastorm ProVision Business Process Analysis
  15. 15. a business process... what’s WRONG with it?
  16. 16. what’s wrong with it? nothing, really…
  17. 17. nothing really, but… it is about HOW we do things
  18. 18. nothing really, but… “If there is one device that has destroyed more innovation than any other, it is Six Sigma” Mark Fishman, MD, president of the Novartis Institutes for BioMedical Research
  19. 19. nothing really, but… it is essentially about NOW and about STRUCTURE
  20. 20. nothing really, but… it is essentially about US
  21. 21. nothing really, but… business processes reach endpoints…
  22. 22. nothing really, but… “At the moment we cross the border of our process workspace, we reach endpoints, not to say wastebaskets. The business process ends. We passed the Pillars of Hercules where the sea falls into an endless chasm.” BIM white paper
  23. 23. nothing really, but… is there life at the other side? side
  24. 24. the case for Business Interaction Management (BIM)
  25. 25. what is BIM? Business Interaction Management is the field of expertise that encompasses the planning, the design and the control of how a company's business processes interact with the (business) processes of other internal and external parties
  26. 26. In the universe, any object that is not interacting with another object is in a void. It might as well not exist since no other object is aware of it. For humans, any human that is not interacting with another human does't exist. Whatever wild movements they make in their little room, they are an object in a void. Interactions matter. They make things real.
  27. 27. Σ (interactions) = your_business so, design your business by designing the interactions
  28. 28. the new economic order market market lead partner B lead partner B lead partner A lead partner A coordinator B coordinator B coordinator A coordinator A contributor A contributor A contributor C contributor B contributor C contributor B
  29. 29. the war for against talent 24.600 layoffs 7,5% of workforce HP-EDS merger
  30. 30. tacit interactions “Tacit interactions are becoming central to economic activity. Making those who undertake them more effective isn’t like tweaking a production line. McKinsey Quarterly
  31. 31. the interaction as the real product Own the Customer’s Total Experience Patricia B. Seybold
  32. 32. envisioning Business Interaction Management
  33. 33. not about reengineering processes, but about designing a business instead of designing process building blocks that stack up into the sky (and hopefully towards our objectives), we must design our business top-down by defining the interactions we want with all parties involved not events, not inputs and outputs become the delimiters of business processes, but interactions become the primary controls interactions become the purpose of business processes, instead of the unfortunate consequence
  34. 34. designing the business… company company i1 { time, i3 { time, content, i2 { time, content, form, content, form, quality, form, quality, emotion, quality, emotion, …} emotion, …} …} partners partners customers customers employees employees
  35. 35. designing the business… company company i2 { time, content, form, quality, emotion, …} i21 { time, content, form, i22 { time, content, form, i23 { time, content, form, quality, emotion, …} quality, emotion, …} quality, emotion, …} customer1 customer1 customer2 customer2 customer3 customer3
  36. 36. designing the business… customer107 customer107 i2107 { time, content, business i325 { time, content, form, quality, process form, quality, emotion, …} stuff emotion, …} employee25 employee25
  37. 37. Reverse Interaction Modelling
  38. 38. RIM: what is it? Reverse Interaction Modelling (RIM) is a structured approach that supports the discovery and the definition of better business processes by focusing on the specifics of the interactions that occur within/between these processes
  39. 39. RIM objectives provide a structured approach that facilitates innovative thinking on all layers of the enterprise – low footprint: requires little formal training; no “methodology”; limited need for facilitators – formal: fixed sequence of steps; limited need for ‘creative’ thinking – few boundaries: promoting ‘out-of-the-box’ thinking – guaranteed: when done well, is likely to uncover the potential opportunities/needs – business focused: focusing on the ‘what’ that is being achieved – interaction focused: focusing on the ‘other side’ of the interaction equation
  40. 40. limitations assumes a sufficient degree of ‘openness’ within the organisation assumes willingness to question the current status quo facilitator will be needed for the first exercise(s) does only cover the interaction specifics, not the complete solution does not cover the feasibility analysis, nor the prioritisation of identified opportunities
  41. 41. the basic model e-business e-business process process business business vision vision change change processes processes opportunities opportunities business business business business e-business e-business reality reality objectives objectives principles principles selected selected opportunities opportunities
  42. 42. RIM basic principles
  43. 43. the Europrofiles case ProVision Workbench, Proforma Corporation
  44. 44. process change objectives to design a new price information delivery process allowing our partners to have easy access to up-to-date information regarding our offering and the corresponding prices and promotions
  45. 45. RIM basic principles five basic steps: definition of scope focus on the ‘deep process’ look for the ‘extended process’ analyse the existing interaction dynamics let your creativity do the rest of the work
  46. 46. 1. definition of scope reduce complexity by focusing on a specific process or subset of processes agree on the level of potential process change that can be assumed try avoiding too much organisational boundaries
  47. 47. 2. focus on the ‘deep process’ reduce complexity by looking at the “deep process” – “…mapping the key goals and interrelationships of activities at a deeper level – to define the essence of a process in a way that allows a great deal of creativity and customisation in how it is actually carried out…” * the very essence of what is being achieved, not how it is being performed today focus on the main interactions between all parties involved not restricted by a specific organisational structure * Thomas W. Malone, The Future of Work, How the New Order of Business Will Shape Your Organization, Your Management Style, and Your Life
  48. 48. 3. look for the ‘extended process’ abandon the traditional intra-company view look for all interactions with stakeholders that might be impacted describe the process as a sequence of interactions initially, do not take into account existing intra- company interactions
  49. 49. 4. analyse the interaction dynamics identify the key metric(s) that will measure success starting from this point – identify the system dynamics that determine success – identify the inhibitors for success – identify which interactions are influencers – (re-) formulate the requirements for deep process change
  50. 50. 5. let your creativity do the rest of the work oh my oh my God… God…
  51. 51. the Europrofiles case
  52. 52. the Europrofiles case ProVision Workbench, Proforma Corporation
  53. 53. process change objectives “Design a new price information delivery process allowing our partners to have easy access to up-to-date information regarding our offering and the corresponding prices and promotions”
  54. 54. focus on the ‘deep process’
  55. 55. look for the ‘extended process’…
  56. 56. five questions every mentor must ask what is it that you really want to be and do? what are you doing really well that is helping you get there? what are you not doing well that is preventing you from getting there? what will you do differently tomorrow to meet those challenges? how can I help / where do you need the most help? Anthony Tjan, CEO, Managing Partner and Founder of Cue Ball http://blogs.harvardbusiness.org/tjan/2009/03/five-questions-every-mentor-mu.html
  57. 57. identify the key metric(s) that will measure success
  58. 58. identify the key metric(s) that will measure success
  59. 59. identify the system dynamics that determine success
  60. 60. identify the system dynamics that determine success
  61. 61. identify the inhibitors for success
  62. 62. identify the inhibitors for success
  63. 63. identify which interactions are influencers
  64. 64. identify which interactions are influencers
  65. 65. identify which interactions are influencers
  66. 66. reformulate the process change objectives “Design a new price information delivery process allowing our partners for the deliver-pricing-information interaction – to have access to up-to-date information regarding our offering and the corresponding prices and promotions in such a way that it avoids re-entering of pricing data for the make-proposal interaction – to be able to generate quotes without the need to re- enter pricing data and in such a way that it allows removing the customer’s perception of only dealing with a small company”
  67. 67. let your creativity do the rest of the work not again… not again…
  68. 68. Epilogue For our little business case, the company that gave the initial idea for this case moved to a web-based solution that gave their partners access to the latest offering and price information and that allowed for entering the details of proposals. The company then would print professionally looking proposal documents, customised for each partner company, that then were mailed by the company to the end- consumer. By creating this service, the company also gained a greater lock-in of their partner channel since most of these partners became more dependent upon these services.
  69. 69. annex
  70. 70. Creative Commons polandeze Jen SFO-BCN FaceMePLS ButterflySha Jaap Steinvoorte AngelsWings nailbender Araleya littledan77 jenny downing surfstyle Lessa0502
  71. 71. Creative Commons AngelsWings @ http://www.flickr.com/photos/linhtinh/ Araleya @ http://www.flickr.com/photos/araleya/ ButterflySha @ http://www.flickr.com/photos/butterflysha/ FaceMePLS @ http://www.flickr.com/photos/faceme/ Jaap Steinvoorte @ http://www.flickr.com/photos/stoneford/ Jen SFO-BCN @ http://www.flickr.com/photos/jenniferwoodardmaderazo/ jenny downing @ http://www.flickr.com/photos/jenny-pics/ Lessa0502 @ http://www.flickr.com/photos/wandererwoman/ littledan77 @ http://www.flickr.com/photos/pressthebuttononthetop/ / nailbender @ http://www.flickr.com/photos/nailbender/ polandeze @ http://www.flickr.com/photos/polandeze/ surfstyle @ http://www.flickr.com/photos/surfstyle/
  72. 72. resources original BIM white paper – http://www.xpragma.com/english/content/pdf/XD-BIM-wp- E.pdf BIM twine – http://www.twine.com/twine/112v41gh7-b4d/business- interaction-management-bim or via http://www.xpragma.com/atom_feed_bim.php

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