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BMW Showcase - Celosphere 2019
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Klaus Straub shares how BMW has leveraged process mining across processes to improve quality and efficiency to achieve corporate agility goals. He will showcase BMWs innovative use of process mining to perfect a plant-floor, sensor-driven process with over 1,000 steps. Presenter: Klaus Straub, CIO, BMW Group Watch here: https://www.youtube.com/watch?v=yyts_srs_zc&t=1h43m47s
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BMW Showcase - Celosphere 2019
- BMW Group IT | 3rd April 2019 BOOSTING EFFICIENCY @ BMW GROUP. #ENJOYIT
- Seite 2Thema | Abteilung | Datum IMPLEMENTATION OF THE STRATEGY NUMBER ONE > NEXT. LEADS TO A TRANSFORMATION PROCESS TOWARDS A MOBILITY TECH COMPANY. IMPACT ON: • Customer experience • Shareholder / analysts • Stakeholder / partner • Employees / attractiveness Vision Competitive Advantage Strategic Approach Corporate Culture PRODUCT S MOBILITY & SERVICES SOFTWARE & SERVICES (TECH) "Value shifts from hardware to software and services." Harald Krüger, 16.03.2016, BMW Group Annual Accounts Press Conference
- Seite 3Thema | Abteilung | Datum THE BMW GROUP IT ORGANIZED IN A WORLDWIDE NETWORK. form the global BMW Group IT network in headquarters, in markets, in shared service centers and in innovation locations (tech offices). SAP Shared Service Center ZA Shared Service Center USA BMW Group IT Europe BMW Group IT APAC BBA IT (Joint Venture) Tech Office Silicon Valley Tech Office Asia BMW Group IT Americas 60 Nationalities in 29 Countries optimize existing business processes and enable new business areas. 230 products and a complete product orientation are connected with the BMW Group ConnectedDrive Backend. ~ 12,200,000 Vehicles to the BMW Group backend through ConnectedDrive are processed daily. ~ 1,000,000,000 Requests (Sales cooperation, offices, …) are connected through the global network infrastructure. 694 Locations BMW GROUP IT. SSC PORT. CTW (Joint Venture) 5,500 employees
- Seite 4Thema | Abteilung | Datum ALL MAIN DEPARTMENTS WORK WITHIN BIZDEVOPS STRUCTURES IN CLOSE COLLABORATION WITH OUR BUSINESS. Infrastructure and Technology Management EMEA EMEA Governance • Proximity to local markets and the business • Integration of Application Management in autonomous product teams • Reduction of interfaces • Minimum Governance Business Processes (Prod.) Business Processes (Sales & Marketing) Enabling Processes Business Processes (Develop.) Financial Services, BMW EU Bank Markets NSC, NFSC Connected Vehicle, Digital Backend, Big Data Region EMEA Region Americas Region APAC
- Seite 5Thema | Abteilung | Datum WE CAME A LONG WAY SINCE 2015. Our Journey 01.07.2015 Integration of Design & Build functions 04.05.2016 Start IT Strategy implementation 25.10.2016 Initiative 100% Agile 01.06.2017 Group IT DevOps structure 11.07.2017 Back2Code Strategy Preparatio n 100% Agile BMW Group IT 20.07.2018 Product Portfolio 1.0 01.09.2018 Critical TechWorks 20.07.2018 Start BizDevOps Implementatio n
- Seite 6Thema | Abteilung | Datum WE WORKED INTENSIVELY ON OUR 4 DIMENSIONS AND TOOK OUR 100% AGILE TRANSFORMATION TO THE NEXT LEVEL. 100% AGILE WATERFALL From plan-driven to value-driven software development FLEXIBILITY & SPEED BMW GROUP IT Strategy IT IN THE PRODUCT & IN SERVICES DIGITALIZATION (ltO,OtO,OtD,DtCC, BM/RM) BUSINESS INNOVATION CUSTOMER- CENTRIC IT SERVICE- DELIVERY PEOPLE & CULTURE #enjoyIT
- Seite 7Thema | Abteilung | Datum TARGET VISION: A COMBINED PRODUCT WITH ONE BUDGET FOR BIZ, DEV AND OPS. Embedded Teams with end-to-end responsibility and BizDevOps skills. „We want the optimal business value!“ PRODUCTPROJECT WALLOFCONFUSION WALLOFCONFUSION Software Code Duties „I want Requirements and Flexibility“ „I want Change“ Product Owner prioritize s Backlog „I want Stability“ IT Software Development Business BIZ DEV OPS IT Software Operations
- Seite 8Thema | Abteilung | Datum PROCESS MINING HELPS TO BRING THE AGILE TRANSFORMATION TO THE NEXT LEVEL. STARTING POINT TARGETPROCESS MINING Visualiz e Benchmar k Standardi ze Optimize & speed up
- Seite 9Thema | Abteilung | Datum PROCESS MINING HELPS US TO IMPROVE OUR PRODUCTS AND SERVICES. Reduce throughput times & rework rates. Improve transparency & product quality. Reduce development cycles & increase standards. Improve compliance & increase automation rates. Get rid of unused system functionalities & increase ticket solution quality. Understand how to best add value for our customers. Get better insights how customers use our products. Faster and more reliable financing decisions. Purchasing & Finance Development Change Management Production Leasing User Experienc e Aftersales IT
- Seite 10Thema | Abteilung | Datum PROCESS MINING HELPS US TO ACHIEVE DATA DRIVEN PRODUCTION. Better analysis of process bottlenecks & rework efforts Evaluate and quantify effectiveness of process changes immediately Combine quality and process information to identify process weaknesses easier Improved daily reporting possibilities High usability of Celonis allows plant employees to generate ad hoc reports whenever Support new production plants and model starts by additional process benchmarks Perfect overall process transparency in near real time
- Seite 11Thema | Abteilung | Datum GREAT FIRST STEPS – BUT WE STILL HAVE A CHALLENGING ROAD AHEAD OF US. Transparency can cause pain and adversities! Naming (quantitative) business value for analytics is not always popular and easy! Scaling the Process Mining team fast enough to support all requests within the BMW Group is challenging – but it‘s all about people! One size does not fit all – different business units need different solutions! The process mining world is fast changing. We need to stay open minded for new ideas! Learning from each other helps us all to get better – we‘re looking forward to great discussions with all of you at Celosphere and in the future!
- Seite 12Thema | Abteilung | Datum THANK YOU. #enjoyIT
Editor's Notes
- On the way to the next level of our agile transformation - for the whole BMW Group, not only for IT - Process Mining plays an important part. The starting point is similar for a lot of our processes – and might sound very familiar to all of you: Processes are often highly complex and slow. They affect multiple departments and various IT systems. Users of a process often become „creative“ in using it and the number of process variants increase over time. Some of these variants are not as planned and in some cases not even fully compliant. The level of process transparency is often low and sometimes noone has a complete overview of them. But how can Celonis Process Mining help to improve this situation? With Process Mining we can for the first time visualize in its full complexity how we really live our processes and not only how we would like them to be. Hereby even process owners can win completely new insights and transparency. We then benchmark their performance within our company but also towards industry standards. This helps to gain insights into the quality and cycle times of all our key processes. By standardizing we reduce unnecessary complexity of our processes and therefore become faster and more flexible for challenges ahead. We identify optimisation potentials and see the underlying reasons, why some processes might not yet be perfect in reality. KPIs can be good first indicators of problems, but can sometimes also lead to narrowly minded attempts to just achieve the KPIs without having the real optimisation target in mind. Process Mining goes deeper and really helps to bring our company‘s performance to a new level. Only companies with fast and efficient processes will have a chance to be successful in the future! The automotive industry needs to become more agile to be able to react better to increasingly faster changing market conditions and to new competitors: Shorter cycle times and higher automatisation rates bring agility by speed. Less rework and higher process conformity bring agility by standardisation and quality. New process insights bring agility by transparancy. With Process Mining we enable our business units to regain full control over their processes and thereby reach better agility levels fast!
- On the way to the next level of our agile transformation - for the whole BMW Group, not only for IT - Process Mining plays an important part. The starting point is similar for a lot of our processes – and might sound very familiar to all of you: Processes are often highly complex and slow. They affect multiple departments and various IT systems. Users of a process often become „creative“ in using it and the number of process variants increase over time. Some of these variants are not as planned and in some cases not even fully compliant. The level of process transparency is often low and sometimes noone has a complete overview of them. But how can Celonis Process Mining help to improve this situation? With Process Mining we can for the first time visualize in its full complexity how we really live our processes and not only how we would like them to be. Hereby even process owners can win completely new insights and transparency. We then benchmark their performance within our company but also towards industry standards. This helps to gain insights into the quality and cycle times of all our key processes. By standardizing we reduce unnecessary complexity of our processes and therefore become faster and more flexible for challenges ahead. We identify optimisation potentials and see the underlying reasons, why some processes might not yet be perfect in reality. KPIs can be good first indicators of problems, but can sometimes also lead to narrowly minded attempts to just achieve the KPIs without having the real optimisation target in mind. Process Mining goes deeper and really helps to bring our company‘s performance to a new level. Only companies with fast and efficient processes will have a chance to be successful in the future! The automotive industry needs to become more agile to be able to react better to increasingly faster changing market conditions and to new competitors: Shorter cycle times and higher automatisation rates bring agility by speed. Less rework and higher process conformity bring agility by standardisation and quality. New process insights bring agility by transparancy. With Process Mining we enable our business units to regain full control over their processes and thereby reach better agility levels fast!
- Our business units and our Process Mining team have identified a huge range of potentials for Process Mining for the BMW Group. Hereby we do not limit ourselves to „standard“ use cases like Purchase-to-pay, Order-to-cash, etc. but also very much focus on our value creating processes like development and production. Some exciting areas where we already use Process Mining are: In Purchasing and Finance we use Process Mining to ensure and monitor full compliance of our processes. Furthermore our Process Mining team works in close cooperation with our Robotics Process Automation team to increase automation rates and therefore reduce cost and improve process quality. Our Development departments face the challenge to reduce development cycles to stay competitive to small and very agile new competitors while still keeping our high quality levels. We can achieve this for example by increasing standardisation and reducing unneccesary complexity. BMW‘s Change Management also needs to react extremely fast and reliable. Since many departments are involved in these processes, Process Mining is essential to achieve full transparency here and to avoid delays in the start of production, quality issues and product recalls later. In Production we need to be fast and efficient. Process Mining helps to reduce our throughput times significantly and to minimize the rework rates, i.e. improve quality of our production processes. But BMW Group is more than just producing premium quality cars. We also help you to customers to finance their cars and Process Mining helps us to achieve faster and more reliable financing decisions. Process Mining also helps us to better understand how our customers use our products. We get transparency into how certain functionalities, for example our navigation systems, car entertainment, etc. are used and how we can improve user experience. Process Mining also helps to get rid of unneaded and expensive features or model variants. BMW wants to support our customers after they have bought their car and Aftersales therefore plays a very important part for our business model. Process Mining helps us to improve interaction with our customers in this phase and to give them premium support. Last but not least we use Celonis Process Mining to improve our IT landscape. Process Mining helps to get rid of many unused IT system functionalities by better understanding how our business users really use IT systems and the underlying processes. This reduces opertions and maintenance costs, but also system migration costs significantly and frees resources for more value adding tasks. Furthermore Process Mining helps us to improve our ticket solution processes and thereby make our customers more happy and to support them faster and better. In the past 2 years we have learned that there is almost no process where Process Mining can‘t add value and the main challenge therefore often is to decide where the business value of Process Mining is highest. The potential is huge!
- To give you a better understanding on how we use Process Mining, let‘s have a closer look at Production. Our target is to achieve a fully data driven production and we therefore analyze and monitor our Production Processes in near real time (in 15 minute intervals) with Celonis. By doing so… We get complete overall process transparency for production processes with more than 1000 activities. We can identify quality issues in the production processes and inform the responsibles in the plant immediately. We can therefore reduce process bottlenecks and rework efforts immediately. Next to these analytics aims, Celonis also helps to produce daily reports for the plant managers to inform them about the performance of the production process. We can hereby monitor, if production process targets are really met. Finally Process Mining helps to see fast and reliable, if process changes are effective or if they maybe cause some new problems. To achieve these targets it‘s important to emphasize that BMW IT only provides the data model, some first basic dashboards and expert support to our colleagues from production. The process responsibles from the plants then generate their own ad hoc reports and detailed dashboards – based on their specific needs. The high usability of Celonis is great for business users to achieve this! Next to optimising existing processes, we also support new production plants and model starts. Process Mining hereby helps to avoid or at least reduce initial problems and to get production up and running as soon as possible. But let‘s have a look into BMW plant Regensburg to see how Celonis is used there… <Video from plant Regensburg>
- You can see: We have already achieved great first steps to make BMW processes better! There is however a challenging road ahead of us. Some of these challenges currently are: Challenge #1: While transparency is great for the company overall, it is not always popular with everyone, since it very clearly and honestly shows all existing process issues and pain points. Getting rid of these problems can bring work and long discussions why these necessary improvements have not been adressed earlier. Challenge #2: To see, if Process Mining is really of significant benefit for a certain process, it is important to quantify its business value. Naming potential business values for analytics however is not always easy and/or popular. In some business areas we therefore have to develop complex estimation methods together with the process experts. Challenge #3: The big success of Process Mining at BMW also brings the challenge with it to scale our Process Mining team fast enough to meet all business needs and to support all rollouts. Since the topic is still very new and not very many experts for it are available on the job market, we are in competition with many companies the get the best employees. We therefore have to stay an attractive employer – because success is all about people! Challenge #4: Doing process mining with so many different business areas and users means listening to our customers to be able to deliver them the service they really need. While some business units only need a quick, one time analysis others require complex, long term monitoring and optimisation possibilities. Some business users only need consulting and then want to work with Celonis and create dashboards themselves. Others however are not keen on building any analysis and need full implementation support from IT. Challenge #5: The Process Mining world is very fast changing and we need to stay open minded. Celonis tries to bring Process topics even closer to the process users by introducing the Action Engine. Cloud possibilities, connections with Robotics Process Automation (RPA) and links to Machine Learning and Simulation Abilities are just some other examples of new possibilities ahead of us. Challenge #6: Events like Celosphere are a great platform to exchange with many other users of Process Mining, but also with experts from Celonis and Celonis partner companies. Our 6th and final challenge therefore is to use this great plattform to talk to each other and to learn from each others experiences. Let us therefore all use this conference for this exchange and let us improve our processes! There is still a long and very exciting road ahead!
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