Optimizing Business Processes for Performance Management

756 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
756
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
31
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Optimizing Business Processes for Performance Management

  1. 1. Optimizing Business Processes for Performance Management Opportunities to Fundamentally Change Your Business Operations Mark Smith – CEO & SVP Research – www.ventanaresearch.com ©2004, Ventana Research, Inc.
  2. 2. Business Reality in this Decade In this decade we are facing a unique set of challenges. Larger Employees Effectiveness Challenges Evolving Compliance Risk Issues Improve Operational Efficiency Competency ©2004, Ventana Research, Inc.
  3. 3. Are We on Target for Improving? Despite widespread focus on missed the Significant investments have efficiency improvements and performance… point in improving information technology… ©2004, Ventana Research, Inc.
  4. 4. Market Timing and Priorities Performance Management The business and IT imperative to align and execute a strategy and methodical process to efficiently improve business and operational performance. Personal Corporate Performance Computing Computing Computing 1980s 1990s 2000s Individual Company People & Process - Coordination - Efficiency - Effectiveness - Independence - Automation - Accountability ©2004, Ventana Research, Inc.
  5. 5. Almost Everyone “Knows” Managing Processes Is Broken Evidence points to numerous mistakes that companies make in managing processes No real linkage between transaction apps and processes Leverage of EAI to connects systems only automates transactions Confusion on purpose of ERP and Business Process Management continues to misguide global organizations Absence of process models explaining business operations Failure to gain productivity across functional areas to common targets Functional focus – not business process focus ©2004, Ventana Research, Inc.
  6. 6. Almost Everyone “Knows” Managing Processes Is Broken Evidence points to numerous mistakes that companies make in managing processes No real linkage between transaction apps and processes LIMITED EFFICIENY GAINS Leverage of EAI to connects systems only automates transactions Confusion on purpose of ERP and Business Process NO STRATEGIC VALUE Management continues to misguide global organizations Absence of process models explaining business operations Failure to gain productivity across functional areas to NO COMPETITIVE ADVANTAGE common targets Functional focus – not business process focus ©2004, Ventana Research, Inc.
  7. 7. New Tactics Are Required Need to develop compelling reasons for action based on business drivers Efficiency through cross functional productivity improvements can be realized Effectiveness drives new opportunity and resources for improvement across organization “How bad are you” assessments – ‘maturity’ appraisal based on key process performance indicators Employees need to be leveraged efficiently to determine best prioritization and alignment ©2004, Ventana Research, Inc.
  8. 8. Performance Management Across Business Organization & Business Process Areas for Improvement Business Finance Performance Workforce Product & Service Operational Performance Supplier Supply Demand Customer Intelligence Chain Chain Intelligence Corporate Systems Process & Content Mgt. Business Intelligence IT Performance Information & Integration Management Information Technology Organization ©2004, Ventana Research, Inc.
  9. 9. Process for Improving Performance Why a Process? A best practice process provides a framework for aligning IT and business to improve performance. Align Understand employees to Understand historical business improved Understand. (Comprehend meaning and operations by and significance) direction by providing methods to providing them model, access, the capability discover & interact to set targets on information and incentives, Performance train, score Align Optimize Align. (Move or adjust Optimize. (Make as achievements, into proper relationship perfect or effective as Optimize informing or orientation.) possible.) Existing direction by business and enabling users to automating plan, forecast, entire process. collaborate, integrate information and act Ventana Research PerformanceCycle™ upon it. ©2004, Ventana Research, Inc.
  10. 10. Imperative for Improving Operational Performance Operational Performance Management is the practice of managing the effectiveness of operational-centric business activities and processes to a common set of goals and objectives Business Drivers Renewed focus on maximizing operational performance demands timely and relevant information Realization that existing ERP & CRM systems have limited focus and investment into improving performance Demand and priority to improve operational activities requires information and insight ©2004, Ventana Research, Inc.
  11. 11. Understanding Business Processes What Are They? A business process is a collection of business activities that are comprised of a set of business tasks, that create business events, that are performed on a routine basis for a defined purpose and result. How Do They Work? Business Marketing Sales Order Fulfillment Finance Process Activity Activity Activity Activity Activity Business Business Business Business Business Events Tasks Events Tasks Events Tasks Events Tasks Events Tasks Business Business Business Business Business Events Tasks Events Tasks Events Tasks Events Tasks Events Tasks Business Business Events Tasks Events Tasks ©2004, Ventana Research, Inc.
  12. 12. Examining Customer Life-Cycle Business Processes Market * Sell * Fulfill * Service Business Business Business Business Business Business Business Activity Activity Activity Activity Activity Activity Activity Respond to View Product Purchase Order Deliver Product Service Marketing Information Product Changes Product Trouble Product Campaign Events Events Events Events Events Events Events • Click to Web • Click to Page • Add Basket • Logon • Notify • Web Site • Go Support • Read info • Dnld PDF • Cust. Info • Enter # • Updates • Enter # • Send Email • Buy product • Read Pages • Ship Info • Changes • Link Web • Find FAQ • 800 Number • Leave page • Leave page • Purchase • Complete • Leave Page • Support • Online Respond to Review Review Cross-Up Shipping Change Return Web Pricing Options Sell Offers Status Information Product Advertising Events Events Events Events Events Events Events • Go to Web • Go to Price • Review • Click on Page • Logon • Address • Go Support • Read info • Compare • Read Info • Read info • Order # • Favorites • Return • Buy product • Competitor • Competitor • Buy product • Review • Email • Print Page • Leave page • Leave page • Leave Page • Leave page • Service • Leave page • Leave page ©2004, Ventana Research, Inc.
  13. 13. Business Process Management What is It? Business Process Management (BPM) is the ability to manage business processes and provide the methods to automate and improve activities and tasks for a particular business purpose. Why do we care? Efficiency – Enable individuals to maximize time on priority business tasks and maximize throughput. Control – Enable the direction and flow of transactions based on pre-defined set of rules and workflow. Responsiveness – Enable individuals to respond quickly to business events to maximize interactions. Improvement – Ability to systematically measure and monitor processes for optimizing performance ©2004, Ventana Research, Inc.
  14. 14. Taxonomy and Evolution of Business Process Management Applications Dashboard & Scorecard Process Control Automation Intelligence Monitoring & Measure Transaction Management Business Process Model Business Events, Rules & Workflow Integration (Application & Data) 1995-2001 2001- Modeling Monitoring & Measuring Rules & Workflow Control Integration (EAI) Automation ©2004, Ventana Research, Inc.
  15. 15. Business Challenges to Business Process Management Change – The issues of change is so large that the value to cost ratio is not perceived to be high enough Investment – Existing investment into business practices and enterprise applications are addressing this challenge Pessimism – The business process re-engineering of 90’s did not deliver systems that facilitated value ©2004, Ventana Research, Inc.
  16. 16. Functional Taxonomy for Operational Performance Management Portals MS Excel Dashboard Web Mobile Metrics and Analytics - Measuring and Monitoring Business Activity and Process Model Business Rules & Workflow Integration - Application, Data and Event Siebel SAP Oracle SAP Peoplesoft Business CRM SCM PLM Financial HR Process Activity Activity Activity Activity Activity Business Business Business Business Business Events Tasks Events Tasks Events Tasks Events Tasks Events Tasks Business Business Business Business Business Events Tasks Events Tasks Events Tasks Events Tasks Events Tasks Business Business Events Tasks Events Tasks ©2004, Ventana Research, Inc.
  17. 17. Improving Operational Performance Requires Rigor Enables you to understand your business activities by defining and linking information to them to gain the highest level of visibility. Understand Understand. (To comprehend the meaning and significance of.) Enables you to Enables you to Business optimize your align your Align Process Optimize business processes employees to Align. (To move or be Optimize. (To make as by analyzing the business processes adjusted into proper perfect or effective as related business relationship or orientation.) possible.) by monitoring activities to reach events from the highest level of business activities efficiency. to ensure the highest level of responsiveness. ©2004, Ventana Research, Inc.
  18. 18. Operational Performance Management Research Overview Assess how organizations leverage information to improve operational performance of business activities and processes Objectives Assess market and customers Understand perceptions and trends Assess maturity and approaches Examine operational processes Analysis Best Practices and Benchmarks Software and Information Frequency Results Over 900 companies analyzed across US, Canada, Europe and rest of world Sponsored Research ©2004, Ventana Research, Inc.
  19. 19. Challenges in Adoption for OPM 1. Not Fully Understand What is the Potential 2. Cultural Changes and Issues of Information Visibility 3. Shortage of Skilled Workers and Budget Not Available ©2004, Ventana Research, Inc.
  20. 20. Traditional Software Approach Choices and Combinations Application Server & EAI – The focus on custom development and integration/infrastructure has longer path to operational deployments. Business Process Management – The focus on automation and control and not on assessing process performance has limited potential. Business Intelligence – The focus on enterprise deployments of reporting and scorecards has begun to meet the broader organizational requirements Enterprise Applications (ERP & CRM) – The focus on improved automation-centric applications have fallen short for performance assessment and improvement. ©2004, Ventana Research, Inc.
  21. 21. Planned Approaches for Improving Operational Performance ©2004, Ventana Research, Inc.
  22. 22. Planned Approaches for OPM ©2004, Ventana Research, Inc.
  23. 23. Areas for Measuring and Monitoring Activities and Processes How Important is Measuring and Monitoring Business Areas 100% 90% Very Important 80% 70% Somew hat Important 60% 50% Neither Important nor 40% Unimportant 30% Somew hat Unimportant 20% 10% Very Unimportant 0% ERM SCM CRM ©2004, Ventana Research, Inc.
  24. 24. Customer Centric Focus The customer relationship management (CRM) set of business activity areas includes: Call Center e-Business Sales Service Marketing The customer relationship management (CRM) set of business processes includes Customer Satisfaction Order to Fulfillment Customer Contact Customer Tracking & Visibility Cross Channel Interaction (e-Business to Traditional). ©2004, Ventana Research, Inc.
  25. 25. Customer Centric – Findings & Status Priorities for Measuring and Monitoring Call Center Customer Contact Customer Satisfaction Sales Business Activities - Move to Daily and Real Time Call Center E-Business Service Business Processes - Move to Daily and Real Time Order to Fulfillment Customer Contact ©2004, Ventana Research, Inc.
  26. 26. Customer Centric – Findings & Status Priorities for Measuring and Monitoring Call Center Customer Contact Customer Satisfaction Sales Business Activities - Move to Daily and Real Time Call Center E-Business Service Business Processes - Move to Daily and Real Time Order to Fulfillment Customer Contact ©2004, Ventana Research, Inc.
  27. 27. Best Practices in Constructing Improvements Business – Drive a user based approach that can adapt to roles and interactions for and between users Pro-Active - Deploy exception based notification systems that alert individuals on responding to business events or pursuing business opportunities Context – Leverage platforms that can process information based on rules and workflow for maximum context for users Integration – Utilize event based data integration that can ensure real time processing of information that can be processed by the platform ©2004, Ventana Research, Inc.
  28. 28. Challenges in Existing Approaches ERP – Applications are not designed for cross functional business activity and process monitoring EAI - Addressing the ‘Silos’, application integration technology helped provide glue for organization to bring transaction and message flow Process Management – Most product require you to automate and control processes before enabling you to measure and monitor Business Intelligence – Traditional approaches do not have access, event or rules based processing to meet the business requirements for timeliness ©2004, Ventana Research, Inc.
  29. 29. Framework for Operational Performance Management Portals MS Excel Dashboard Web Mobile Understand – Optimize – Align Capabilities Performance Management Information Management Integration Management Siebel I2 Oracle SAP Peoplesoft Business CRM SCM PLM Financial HR Process Activity Activity Activity Activity Activity Business Business Business Business Business Events Tasks Events Tasks Events Tasks Events Tasks Events Tasks Business Business Business Business Business Events Tasks Events Tasks Events Tasks Events Tasks Events Tasks Business Business Events Tasks Events Tasks ©2004, Ventana Research, Inc.
  30. 30. Benefits of Enabling Operational Performance Management Responsiveness – Enable individuals to respond quickly to business events that are part of their interactions with employees, customers, suppliers and customers. Cycle Time – Enable the ability to reduce time between events and decisions at the business process level thus providing more cycles for revenue opportunities and cost savings. Effectiveness – Enable individuals to maximize their role and responsibilities by providing them the information to drive action and prioritize to goals and initiatives. ©2004, Ventana Research, Inc.
  31. 31. State of Market and Customer Environment Process Management Process Automation – BEA, Filenet, HandySoft, IBM, Intalio, SAP, Tibco … Process Measurement – Fuego, IDS Scheer, Lombardi, Savvion … Transactional-Centric (SCM, PLM, ERP) Enterprise - Oracle, PeopleSoft, SAP, Siebel Mid-Enterprise - I2, Manugistics ©2004, Ventana Research, Inc.
  32. 32. Why Now? The demand for aligning business and information technology to improve process performance is next wave of business opportunity Opportunity Leverage & Build on ERP & CRM Investments Applications that manage/improve processes Elevate focus to operational management Leverage vertical and domain expertise ©2004, Ventana Research, Inc.
  33. 33. Questions and Answers Mark Smith Ventana Research 650-631-0800 mark.smith@ventanaresearch.com www.ventanaresearch.com ©2004, Ventana Research, Inc.
  34. 34. Mark Smith – CEO & SVP Research Mark is responsible for the overall direction of Ventana Research, and drives the global performance management research agenda, which covers both business and technology areas. He is also the Director of the IntelligentPerformance Conference and the community editor of IntelligentPerformance.com, the industry's first independent forum for information, news, and discussion about business performance management. Mark is a contributing editor for Intelligent Enterprise magazine. An industry veteran with more than 17 years of industry experience in business and technology, before founding Ventana Research, Mark worked at companies including SAP, META Group, Oracle and IRI Software. mark.smith@ventanaresearch.com ©2004, Ventana Research, Inc.
  35. 35. Company & Mission We are a Provider of Research and Consultation Services in Performance Management to business and IT management Our research and advisory Consulting knowledge provides direct value for assessment and recommendations Our research and experience is leveraged Advisory throughout a year for our clients to maximize investments Our research is the foundation that Research provides valuable insight to our knowledge of market ©2004, Ventana Research, Inc.
  36. 36. Background & Differentiation The team has significant experience in information technology, consulting, implementing, managing IT projects and providing guidance to organizations. Attributes Focus One research framework for business and technology coverage in Performance Management & Information Management Expertise Experienced and knowledgeable analysts in performance management with over 21 years average experience. Research Leveraging quantitative and qualitative research in Performance Management to drive innovation. Service Research and services that deliver substantive value to end-user organizations through simple assessment and recommendations. Influence Extensive industry, media and financial network for communicating research and best practices to market. Trust Proven execution and performance for end-user organizations at all stages of maturity in leveraging information for business value. ©2004, Ventana Research, Inc.
  37. 37. Our Services Approach We have a high value and low risk client engagement process to assist organizations in the mission of adopting best practices, processes and systems for business and IT to improve performance Educational Audit & Performance Workshop Assessment Services 1 – 2 Days 1 – 2 Weeks Annual Listen & Engage Session Planning to Perform Performance Excellence • Knowledge Transfer • Assess Environment • Access to Analysts • Interactive Session • Analyze Options • Access to Research • Address Key Issues • Recommendations • Consulting Days • Input to Plan • Optimize Plan • Conference Discounts ©2004, Ventana Research, Inc.
  38. 38. Provide Research and Knowledge to Media & Associations We partner with media to conduct research and maximize sponsor reach with market influence and lead generation. Ventana Research syndicates research to over 750k people. ©2004, Ventana Research, Inc.
  39. 39. Performance Management Community and Research Site http://www.ventanaresearch.com ©2004, Ventana Research, Inc.

×