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Business Model-Oriented Approach to Process Management

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An organization's approach to process management will differ depending on its business model. So what does an organization with multiple business models do to address the particulars of each model? In …

An organization's approach to process management will differ depending on its business model. So what does an organization with multiple business models do to address the particulars of each model? In this presentation, Edward Schreckling of Wittenstein AG explains how his organization applies process management within its different business models. He discusses the governance structure and the metrics that support process management as well as the objectives and tools used to evaluate and facilitate the organization's efforts.

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  • 1. Business Model-OrientedApproach to BPMDr. Edward Schreckling, WITTENSTEIN AGHouston/TX, November 10, 2011
  • 2. © 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 2
  • 3. BPM Reality Bites, Too(at least, sometimes) BPM Board: MDs: Efficiency Effectiveness Standardized Tailor-made processes processes© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 3
  • 4. Structure1. The Problem2. WITTENSTEIN3. The Seven Tenets of BPM (and the Solution)4. Key TakeawaysMore detailed handout structured identically.© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 4
  • 5. Selected Applications Active Side Stick Subsea Valve Drives © Statoil FITBONE® Electro-Mobility© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 5
  • 6. Our Process Framework(level 1/Cat.)© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 6
  • 7. Our Structure(w/o 27 international subsidiaries)© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 7
  • 8. Our Process Frameworks(this time, using the plural)© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 8
  • 9. Our BPM Mission We put our Customers (and their Customers) on the FAST LANE!© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 9
  • 10. Our BPM Goals FAST LANE Criteria© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 10
  • 11. Our BPM Challenge Extreme Approaches One For Each One For All 1 2 Criteria C , F , V Criteria E , T© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 11
  • 12. Our BPM Approach Business Model-Orientation Steps: 1 2 3© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 12
  • 13. Our Business Models© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 13
  • 14. Step 1: Build & Fill BusinessModel/Business Unit Matrix1.1 Interrelate Business Models and Business Units (BUs). 11.2 Consider process-relevant Market Specifics.1.3 Consider process-relevant Strategies, Structures, and Regulations.© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 14
  • 15. Step 2: Build & Fill SuccessFactors/Process Matrices2.1 Interrelate Success Factors and Processes for each BM. 22.2 Identify critical Process Categories.2.3 Prioritize Process Categories.2.4 Identify critical Process Groups.© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 15
  • 16. Step 3: Link BPM with BMsThrough Process Metrics3.1 Assign appropriate Process Metrics to Process Groups. 33.2 Determine Target Values for each Process Metric.© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 16
  • 17. Our Evaluation Criteria(selection) Metrics (optimization potential) Strategic importance of Business Model Revenue Share of Business Model Contribution to Success Factors of Model(s) Process Costs Business Case Relevance for planned IT Project (e.g. ERP)© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 17
  • 18. Our Governance Model Main Processes Process Project Proposition Process for Releasing To-Be-Processes Main Roles Process Driver Steering Committee Process Developer Process Modeling Conventions© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 18
  • 19. Our BPM Tools ARIS Business Designer Value Chain Diagrams Event-Driven Process Chains ARIS Business Publisher© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 19
  • 20. Change Management(BPM is not always welcomed like this)© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 20
  • 21. Our Efforts in a Nutshell BPM Mission and Roadmap Show-case Project Low BPM resources (staff, budgets) Involvement of Top Management Business Model-Orientation© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 21
  • 22. Key Takeaways1. Business models link strategy with BPM.2. They can help: Bringing in the customer perspective Managing complexity Finding a resilient compromise between effectiveness and efficiency.© 2011 WITTENSTEIN AG. ALL RIGHTS RESERVED. 22

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