Aris Solution Process Performance Management


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  • © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
  • There are different tasks for both tools for delivering information to Corporate Performance Management (CPM): BW is meant for consolidating and harmonizing all enterprise data into one repository for unified business reporting (functional performance) PPM is meant for investigating in business processes for measuring their performance and analyzing their structures Both tools are complementary to each other, since the functional/departmental perspective of BW is being completed by PPM’s process perspective
  • Aris Solution Process Performance Management

    1. 1. ARIS Solution for Process Intelligence & Performance Management Discover the secret of successful process managers!
    2. 2. Agenda © IDS Scheer AG What’s your Challenge? What is an ARIS Solution? ARIS Product Portfolio ARIS Solution for PI & PM 1 2 3 4
    3. 3. Early Indicators of Business Performance © IDS Scheer AG <ul><li>FINANCE </li></ul><ul><li>Revenues </li></ul><ul><li>EBIT </li></ul><ul><li>Cashflow </li></ul><ul><li>… </li></ul>Business Performance
    4. 4. Process Intelligence & Performance Management Challenge <ul><li>Process Intelligence & Performance Management (PI & PM) has evolved from Business Intelligence (BI) and Business Process Management (BPM) </li></ul><ul><li>BI does not provide sufficient feedback to the operational management where and how to optimize the business processes </li></ul><ul><li>The AS-IS picture of actually running business processes is missing , which builds the common information base to achieve both </li></ul><ul><ul><li>Operational excellence by measuring and monitoring process performance indicators </li></ul></ul><ul><ul><li>Optimized organizational structures by improving the implemented processes </li></ul></ul>© IDS Scheer AG “ Business processes that can not be measured, can not be improved either.” PI & PM BPM BI
    5. 5. BPM Lifecycles © IDS Scheer AG Process Intelligence Business & Performance Metrics Analysis of Structures As Is To Be Performance Management
    6. 6. Gartner's BPM maturity model © IDS Scheer AG
    7. 7. Agenda © IDS Scheer AG What’s your Challenge? What is an ARIS Solution? ARIS Product Portfolio ARIS Solution for PI & PM 1 2 3 4
    8. 8. Product & Solution | ARIS Solution © IDS Scheer AG <ul><li>The ARIS Solutions integrate robust products and practically proven methodology </li></ul><ul><li>Flexible combination of ARIS Platform products provide specific functionalities </li></ul><ul><li>Best-practice methodology of ARIS Value Engineering (AVE) fulfills specific customer needs </li></ul>Best-practice Methodology (AVE) ARIS Platform Products Aggregated Knowledge from Customer Projects
    9. 9. Agenda © IDS Scheer AG What’s your Challenge? What is an ARIS Solution? ARIS Product Portfolio ARIS Solution for PI & PM 1 2 3 4
    10. 10. TO BE vs. AS IS © IDS Scheer AG Documented Actually Executed <ul><li>Times </li></ul><ul><li>Costs </li></ul><ul><li>Quantities </li></ul><ul><li>Risks </li></ul><ul><li>Probabilities </li></ul>+ Service providers Project managers Process owners Method consultants ARIS modelers Project administrators System administrators Company Customer Request 0.50 Day(s) Raise Customer Order Order being processed 0.50 Day(s) Job Control NJRA Term point Allocation complete Customer SDH and Parenting identified Core Network Built Customer Call Complete Order Requirements Reviewed Service Configuration Complete 0.50 Day(s) Term Point Allocation A601 4.00 Day(s) Identification of Core Network Capacity 0534 0.50 Day(s) Determine Service Delivery Date CREP Call Customer CALL 0.50 Day(s) Review Order Requirements 0680 14.00 Day(s) Build Core Network 0630 2.00 Day(s) Identification of Customer SDH and Parenting 0532 3.00 Day(s) Configure Service CONF 0.50 Day(s) Report Service Order Complete WNEX 1.00 Day(s) Handover Service to Customer HAND 0.50 Day(s) Service Completion Monitor COMP Service Completion being Monitored Handover Complete Service Completion Reported Service Delivery Date Determined Job Control Initiated Routing and Assignment of Circuit Complete CSPC Wideband Planner Network Solution Design CSPC Front Office CWPC Network Solution Design Network Solution Design NOU CWPC Front Office CWPC Front Office
    11. 11. Early Indicators of Business Performance © IDS Scheer AG <ul><li>FINANCE </li></ul><ul><li>Revenues </li></ul><ul><li>EBIT </li></ul><ul><li>Cashflow </li></ul><ul><li>… </li></ul>Business Performance Process flow Communication Material flow Indicator Trend analysis Distribution Influencers Metrics / Symptoms Structures Data flow <ul><li>Times </li></ul><ul><li>Process costs </li></ul><ul><li>Quality metrics </li></ul><ul><li>Risk metrics </li></ul><ul><li>Organizational Performance </li></ul><ul><li>Communication </li></ul><ul><li>Compliance </li></ul>PROCESSES and ORGANIZATION
    12. 12. Process Network © IDS Scheer AG Acquisition After Sales Delivery
    13. 13. Process Instance © IDS Scheer AG Order 5128 Acquisition After Sales Delivery
    14. 14. Measure the Performance Example - Order Processing © IDS Scheer AG Order Processing <ul><li>Number of complete orders (in full) </li></ul><ul><li>Delivery performance (on time) </li></ul><ul><li>Number of order changes </li></ul><ul><li>Number of perfect orders </li></ul><ul><li>Process cycle time </li></ul><ul><li>Frequency of activities </li></ul>Lower Times Better Quality Lower Costs Depending on dimensions: time, region, channel, product, supplier, plant ...
    15. 15. Efficiency vs. Customer Satisfaction © IDS Scheer AG Manager Customer SATISFACTION ? <ul><li>Indicators </li></ul><ul><li>Dimensions </li></ul><ul><li>Measuring Points </li></ul><ul><li>Measuring Frequency </li></ul>Sales Order Confirmation Logistics Shipping FI / CO Invoicing Start End End End Start Cycle time Waiting time EFFICIENCY ? Costs Risks Volume Times Quality
    16. 16. „ Re-Construction“ of process models © IDS Scheer AG SOA Engine / Service Bus Flow of documents /events Process sequence Time ERP CRM FI/CO Inquiry Create quotation Sales staff Accept order Customer management Create shipping list Clerk Write invoice Group leader Check payment Clerk Adapter Adapter Adapter Order Shipping list Invoice Payment received Quotation
    17. 17. Discover the WHY ! - Indicators + Structures © IDS Scheer AG Uncovering process behavior patterns Monitoring Performance Indicators automatically What How Why As is Processes !!
    18. 18. FLEX-based Enterprise Dashboards © IDS Scheer AG <ul><li>Enterprise performance at a glance </li></ul><ul><ul><li>Visualization of trends </li></ul></ul><ul><ul><li>See boundaries of traffic lights </li></ul></ul><ul><li>Integrated Dashboard Builder </li></ul>
    19. 19. Distribution Chart <ul><li>Distribution </li></ul><ul><li>Visualize planned values </li></ul><ul><li>Show statistics (average, median, percentile) </li></ul><ul><li>Scatter chart </li></ul><ul><li>Shows correlation between KPIs </li></ul>© IDS Scheer AG
    20. 20. Process Instance Controlling <ul><li>List of single process instances </li></ul><ul><li>Mark critical instances by colour </li></ul><ul><li>Display any attributes from EPC in list </li></ul><ul><li>Function instance lists </li></ul>© IDS Scheer AG
    21. 21. “ Re-Construction” and Analysis of Processes <ul><li>Improved UI </li></ul><ul><li>Mark most probably path in aggregated process model </li></ul><ul><li>Compare single process instance with average process model in flow chart </li></ul><ul><li>Resources view </li></ul>© IDS Scheer AG „ line width“ announces frequency of activity AUTO-generated process-display Direct access -favorites Drag‘n‘Drop Input of filters and dimensions Bottlenecks Probabilities ?
    22. 22. Reporting © IDS Scheer AG <ul><li>WYSIWYG-Reporting Engine </li></ul>
    23. 23. Easy Mining © IDS Scheer AG <ul><li>Unified report of all mining functionalities </li></ul><ul><ul><li>Automatic check and messaging </li></ul></ul><ul><ul><li>Email notification </li></ul></ul><ul><ul><li>List of findings on HOME </li></ul></ul><ul><ul><li>Integrated into 'Improvements' module </li></ul></ul>How to find the relevant information?
    24. 24. Communication analysis © IDS Scheer AG Focused org. unit Activities
    25. 25. Analysis of flow of materials (Physical supply chain) © IDS Scheer AG
    26. 26. Integration scenario SAP BI and ARIS PPM © IDS Scheer AG Process Patterns Why? Financial Values What? PPM: process oriented BW: data oriented Cycle Times How? Portal Which Cycle times are behind the revenues? Which Process patterns are behind the revenues?
    27. 27. ARIS PPM – Product Overview © IDS Scheer AG <ul><li>Intuitive Performance Cockpits for C-level management </li></ul><ul><li>Process-oriented perspective for BI solutions </li></ul><ul><li>Automatically captured graphical process instances </li></ul><ul><li>Easily identified improvements with process structures </li></ul><ul><li>Consistent analysis of communication and organization </li></ul><ul><li>Near-time monitoring of running processes </li></ul><ul><li>Automatic runtime data extraction out of IT systems </li></ul><ul><li>Preconfigured industry solutions </li></ul><ul><li>Scalable and web-based architecture </li></ul><ul><li>Fully integrated into ARIS Platform </li></ul><ul><li>Intuitive user interface </li></ul><ul><li>250+ installations worldwide </li></ul> Business processes live and in color ... is a patented client/server software, that automatically captures and visualizes living business processes, measures and analyzes process performance and uncovers behavior patterns in organizational structures.
    28. 28. Real-Time Enterprise © IDS Scheer AG <ul><li>Reasons for deploying Business Activity Monitoring </li></ul><ul><li>Monitor key business objectives </li></ul><ul><li>Anticipate operational risks </li></ul><ul><li>Reduce time-to-action (lag from event to action) </li></ul>„ By 2012, the average BAM latency requirements will decrease to less than one minute , from an average of less than 15 minutes in 2006 (0.7 probability).“ GARTNER
    29. 29. Example: Credit Card Processing © IDS Scheer AG Process measurement and analysis ” How many incorrect credit card transactions happened last week? What are the reasons? Where are the bottlenecks within the process?” Event Monitoring „ IF there are more than 2 transactions of the same credit card within a 5-seconds-window THEN block the credit card AND inform the organizational unit fraud detection.” 1 2 3 4 5 6 7 8 9 time
    30. 30. ARIS Process Event Monitor (ARIS PEM) - Dashboards © IDS Scheer AG Process Perspective Organizational Perspective Exceptions Track & Trace
    31. 31. Integrating Best-of-Breed Technology © IDS Scheer AG BusinessBridge Technology ARIS PPM Interface Realtime Extractors Event Filtering and Correlation Engine Core Process Monitoring Module Compliance Monitoring Module SLA Monitoring Module RFID Monitoring Module Process Technology …
    32. 32. ARIS Process Event Monitor – Product Overview © IDS Scheer AG <ul><li>Event-based analysis of events streams </li></ul><ul><li>Highly scalable for millions of real-time events </li></ul><ul><li>Builds accurate baselines for millions of items </li></ul><ul><li>Detects significant exceptions at an individual level </li></ul><ul><li>Detects and adapt to subtle trends </li></ul><ul><li>Forwards looking comparison against plan </li></ul><ul><li>Dashboard and reporting </li></ul><ul><li>Complete integration in the ARIS Platform </li></ul> Automated action triggering based on real-time monitoring … reduces time-to-action on business-critical events based on process-relevant runtime information. … automates exception handling by rule-based alert and notification mechanisms. … monitors running processes in real-time by an automated capturing and aggregating of IT-triggered events at runtime. powered by
    33. 33. ARIS Process Event Monitor © IDS Scheer AG Strategic Process Measurement and Analysis >> Measure – Analyze – Improve <ul><li>Near-past analysis of finished business processes (days to months) </li></ul><ul><li>Measure performance indicators of executed business processes </li></ul><ul><li>Analyze captured process flow and organizational structures </li></ul><ul><li>Improve business processes based on best practices </li></ul>Operational Process Monitoring >> Monitor – Alert – Take Action <ul><li>Real-time event-driven process monitoring (seconds to hours) </li></ul><ul><li>Monitor status of running business processes in real-time </li></ul><ul><li>Alert business-critical events on rule-based notifications </li></ul><ul><li>React on exceptions to take countermeasures </li></ul>powered by
    34. 34. ARIS BSC <ul><li>One-stop solution (integrated software and standardized procedure) for strategic corporate management </li></ul><ul><li>Fast implementation and communication of the corporate strategy in all divisions by integrated software </li></ul><ul><li>Support in all phases of strategy projects (design, implementation, monitoring, and re-alignment) </li></ul>© IDS Scheer AG >> Consistent implementation of the corporate strategy from KPIs to processes, based on a central corporate repository <<
    35. 35. ARIS Business Optimizer <ul><li>Support in strategic decision making </li></ul><ul><li>Fast results and decisions due to convenient and easy evaluation of KPIs </li></ul><ul><li>Easy, company-wide, integrated analysis of goals, times, costs, resources, and capacities </li></ul>© IDS Scheer AG >> Optimize Business Processes through KPIs – Flexible configuration to meet company-specific requirements <<
    36. 36. ARIS Business Optimizer © IDS Scheer AG <ul><li>Publishing target models </li></ul><ul><ul><li>Process optimization </li></ul></ul><ul><ul><li>Communication </li></ul></ul><ul><li>Presentation, reporting, decision making </li></ul><ul><ul><li>Optimum variant </li></ul></ul><ul><ul><li>Product decision </li></ul></ul><ul><ul><li>Make or buy </li></ul></ul><ul><li>Default values </li></ul><ul><ul><li>Plan values </li></ul></ul><ul><ul><li>Warning values </li></ul></ul>Calculation, analysis, evaluation, planning of key performance indicators What-If? Process structure Actual rates Measured times, quantities
    37. 37. ARIS Business Simulator © IDS Scheer AG Dynamic analysis of business processes for higher flexibility Identification of bottlenecks and weak points to improve efficiency Input factors for ARIS Business Optimizer Internal and external benchmarking Resource optimization regarding People & IT Identification of cycles EPC & BPMN powered by
    38. 38. Process Intelligence and Performance Management – Components © IDS Scheer AG Scorecards System Management / IT Monitoring STRATEGIC TACTICAL OPERATIVE Meta Data Management Data Extraction / Capturing Event Processing & Monitoring Notification / Alerting Information Delivery Dashboards / Portals / Mash-Ups / Reporting / Adhoc Query Collaboration Management of Improvements What-If- Analysis / Simulation Benchmarking / Comparision Root-Cause Analysis / Mining / Statistics Prediction / Forecasting OLAP / Advanced Visualization Budgeting Planning Forcasting Profitability Modeling & Optimization Financial Consoli- dation Statuatory & Financial Reporting Finance / CPM CONTENT Metrics Predefined Analytic Applica- tions Bench- marks Process Measurement / Analysis Metrics Structure Organization / Resources Measurement / Analysis Metrics Structure Material flow Measurement / Analysis Metrics Structure Data Analysis Quantities / Times / Cost / Quality / Risks Business Segments Processes + Organization Key Success Factors & Objectives Business & Performance Metrics
    39. 39. Process Intelligence and Performance Management – Components © IDS Scheer AG System Management / IT Monitoring Process Event Monitor Organizational Analysis Process Mining PPM / PEM Extractors PPM CTK CTK STRATEGIC TACTICAL OPERATIVE CONTENT Metrics Predefined Analytic Applica- tions Bench- marks Performance Dashboard Continuous Process Improvement
    40. 40. Agenda © IDS Scheer AG What’s your Challenge? What is an ARIS Solution? ARIS Product Portfolio ARIS Solution for PI & PM 1 2 3 4
    41. 41. Implement ARIS Solutions using ARIS Value Engineering © IDS Scheer AG <ul><li>Process-driven Business Intelligence </li></ul><ul><li>Performance Management </li></ul><ul><li>Business Activity Monitoring (BAM) </li></ul>ARIS Value Engineering for PI & PM ARIS Solution Scenarios for PI & PM
    42. 42. Scenario: Process-driven Business Intelligence © IDS Scheer AG Process-driven Business Intelligence Performance Management Enterprise Reality
    43. 43. ARIS Value Engineering for PI & PM – Roadmap © IDS Scheer AG Process-driven Business Intelligence – Work Packages Controlling Setup PI & PM system infrastructure Execute data extraction Execute system customizing Implementation Analyze processes to identify improvements Prepare automated process evaluation Map detailed as-is business processes Design Understand business environment Analyze key success factors Define project scope and plan Record enterprise map Determine key performance indicators Strategy Perform PI & PM test and validation Determine end-to-end processes Perform PI & PM user training Execute PI & PM go-live management Monitor operational performance Analyze operational performance Manage PI & PM system Identify and manage improvements
    44. 44. ARIS Value Engineering for PI & PM – Deliverables © IDS Scheer AG Process-Driven Business Intelligence – Work Products Controlling Implementation Design Strategy KPI & System Documentation Customizing framework Performance Analysts Productive PI & PM System Enterprise Process Map Key Performance Indicators End-to-End Scenarios Business Segment Matrix Dashboard Design Reporting Templates KPI details & Analysis Criteria Measurable End-to-End Processes Uncovered Bottlenecks & Process Flow Defects Organizational Performance Gaps & Relationships Performance & Structural Optimization Potentials Dashboards with Process Performance Overview
    45. 45. Process-driven Business Intelligence Controlling Phase – Overview © IDS Scheer AG Which performance measuring needs to be monitored daily? Which measuring results an analysis of the captured process structures and organizational relationships? Opening Questions Operations & Control Work Products How to continuously identify potentials for improvement? Monitor operational process performance Analyze operational process structures Manage PI & PM system Identify and manage improvements How to manage the solution in a production environment? Uncovered Bottlenecks & Process Flow Defects Organizational Performance Gaps & Relationships Performance & Structural Optimization Potentials Dashboards with Process Performance Overview Permanent System Performance Monitoring
    46. 46. Process Intelligence & Performance Management – Results and Benefits © IDS Scheer AG <ul><li>Make the efficiency of process improvements measurable in the running business </li></ul><ul><li>Improve competitiveness by permanent process performance management </li></ul><ul><li>Increase higher customer satisfaction with transparent running end-to-end processes </li></ul><ul><li>Direct link between performance gaps and bottlenecks in the executed processes </li></ul><ul><li>Easily identify best practices based on automatically captured process logic </li></ul><ul><li>Ensure the operation of implemented applications by ongoing system monitoring </li></ul><ul><li>Establish continuous process improvement </li></ul>Results and Benefits Controlling Work Products Monitor operational process performance Analyze operational process structures Manage PI & PM system Identify and manage improvements Uncovered Bottlenecks & Process Flow Defects Organizational Performance Gaps & Relationships Performance & Structural Optimization Potentials Dashboards with Process Performance Overview Permanent System Performance Monitoring
    47. 47. Enterprise Process Map live in a Performance Dashboard © IDS Scheer AG Current sales performance
    48. 48. End-to-End Process Performance for Line of Business © IDS Scheer AG Current sales cycle time Performance overview of end-to-end processes Direct link to drill-down into process analysis
    49. 49. Monitoring of a Process Performance Indicator © IDS Scheer AG Improved performance due to optimized processes
    50. 50. Trend Analysis of a Process Performance Indicator © IDS Scheer AG Improved performance due to optimized processes
    51. 51. Organizational Analysis – Activity Analysis © IDS Scheer AG
    52. 52. Identified Performance Gaps © IDS Scheer AG Performance gaps detected in time flow chart Process defects identified in aggregated process flow
    53. 53. Process-driven Business Intelligence: Benchmarking of Best Practice and Worst Performer © IDS Scheer AG Best Practice Region A Benchmarking on activity level Worst Performer Region B Performance gaps detected in benchmarking Best Performance due to lean process flow Process defects identified as bottlenecks
    54. 54. Fast Performance achieved by lean Process Flow © IDS Scheer AG Focused org. unit Activities
    55. 55. Comparison of automatically captured AS-IS Processes © IDS Scheer AG Best Case Region A Worst Case Region B
    56. 56. Indicator Monitoring (Performance Management) + Structure Analysis (Process Intelligence) © IDS Scheer AG Process flow Communication Material flow Indicators Trend analyses Statistics Drill-down analyses lead to Performance Indicators (“Symptoms” for better Information) Structures (“Root-Causes” for concrete Improvements) Data flow
    57. 57. Summary © IDS Scheer AG
    58. 58. © IDS Scheer AG