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Btm2

BTM2

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Btm2

  1. 1. © 2013 SAP AG. All rights reserved. 1 Tim Hornung MS, SAP Joel Adler Ph.D. UPenn The SAP Business Transformation Management Method (BTM2) parallels with DYNAMICS/P3
  2. 2. © 2013 SAP AG. All rights reserved. 2Public 2 What is Organizational Dynamics at Penn about? Dynamics Concentrations
  3. 3. © 2013 SAP AG. All rights reserved. 3Public 3 Alignment of BTM2 & DYNM/P3 A rare industrial situation that sees its business strategy inextricably tied to these two principles of Penn Organizational Dynamics •Holistic approach •Balance of Process and Behavioral perspectives Mapping of Content of the P3 concentration •Project Management •Program Management •Risk Management •Portfolio Management •Business Process Management
  4. 4. © 2013 SAP AG. All rights reserved. 4Public 4 BTM2
  5. 5. © 2013 SAP AG. All rights reserved. 5 63% of the world’s transaction revenue touches an SAP system.
  6. 6. © 2013 SAP AG. All rights reserved. 6 The SAP mobile platform reliably delivers 1.8 billion text messages worldwide every day.
  7. 7. © 2013 SAP AG. All rights reserved. 7 SAP HANA can increase analysis speed by more than 10,000x, equal to walking from California to New York in 6 minutes.
  8. 8. © 2013 SAP AG. All rights reserved. 8Public 8 Our customers produce 85% of the world’s pet food.
  9. 9. © 2013 SAP AG. All rights reserved. 9Public 9 Drivers for Business Transformation (BT) Fundamental and complex changes Technological innovations (e.g. Information and communication technologies) Increasing globalization (that leads, for example to stronger competition) Pressure for sustainability (which results in changed customer preferences or regulations) Changing workforce (such as increasing global mobility) Radical changes of economic conditions (e.g. Financial crisis) What is Business Transformation (BT)* – Excerpt Business transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; business transformation can also radically alter the company's relations with the wider economic and societal environment. What is Business Transformation (BT)* – Excerpt Business transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; business transformation can also radically alter the company's relations with the wider economic and societal environment. Drivers for BT: * www.fhnw.ch/iwi/bta Ö Business Transformation Research.
  10. 10. © 2013 SAP AG. All rights reserved. 10Public 10 Business Transformation Academy A global, trans- and interdisciplinary network of Thought Leaders Academics / Institutes Customers / Professionals SAP Experts New: SAP Partners
  11. 11. © 2013 SAP AG. All rights reserved. 11Public 11 FindingsFindings Low success rate of business transformation projects (less than 40%) Source: Isern et al. (2009) Lack of holistic management approaches Source: Winter, Uhl (2011) Low success rate of business transformation projects (less than 40%) Source: Isern et al. (2009) Lack of holistic management approaches Source: Winter, Uhl (2011) Business Transformation Management Call for action X 25% Failure because of technical reasons e.g. demands can not be mapped, sizing problems, problems with connecting legacy systems X 75% are failing because of non-technical reasons e.g. non acceptance of the solution, skill problems, communication problems, problems with project resources Source: Seven Reasons Why Information Technology Projects Fail (2011)
  12. 12. © 2013 SAP AG. All rights reserved. 12Public 12 The BTM2 – Big Picture Enablement Program/Project Management Program Planning and Governance Program & Proj. Integration Mgmt Program & Project Scope Mgmt Program & Project Time & Cost Mgmt Program Quality Mgmt Program Human Resource Mgmt Program Procurement Mgmt Risk Management 360 Strategic Risk Assessment Deep dives for strategic risk areas Assess transformation business case Define risk strategy Risk Management Execution Risk Monitoring Identify additional improvement Risk Mgmt. as part of Board Governance Competence & training management Competence strategy Training need analysis As-is analysis Gap analysis Curriculum development Training preparation Training Evaluation & improvement Program Reporting Organizational Change Management Set-up & governance Stakeholder management Change agent network Communication management Performance management - Project team Performance management - Business Change readiness assessment Change monitoring Processes Management Determine scope of analysis From template to bespoke inventory Identify improvements /add attributes Map selected processes Plan process implementation Implement processes Evaluate processes Establish CIP Value Management Baseline analysis Value estimation Detailed business case Agree ownership for realization Plan benefit realization Execute benefit realization Review and evaluate results Establish potentials for further benefits Meta Management Orchestration of individual disciplines: Guidelines, Leadership, Culture, Values and Communication IT Transformation Management Business and IT Capability Assessment To-be analysis Gap analysis IT roadmap plan Solution architecture design IT Deployment plan IT Operations & Service Optimization IT Lifecycle Management Strategy Management AS-ISData Collection Analysis of needs & maturity level Design business vision Design Business Model Integrated transformation plan Business Case Organizational model Risk analysis Direction
  13. 13. © 2013 SAP AG. All rights reserved. 13Public 13 EnvisionEnvision Strategy Management Orchestration of individual disciplines: Guidelines, leadership, culture, values, and communication Business Transformation Management Methodology (BTM²) Disciplines and deliverables in detail Meta Management EngageEngage TransformTransform OptimizeOptimize Strategy to be approved by decision makers Project startup and AS-IS Data collection Analysis of transformation needs and causes (80/20 rule) Design Business Vision Design Business Model Define integrated transformation plan Plan benefit realization Detailed benefit estimation Benefit review and evaluation Realize benefit Establish potentials for further benefits Value Management Risk mitigation plan Risk Identification Execute risk mitigation plan Risk monitoring Review and evaluate risks Risk Management Process to-be design Business process analysis Process evaluation Process implementation Run, monitor and optimize Business Process Mgt. IT deployment plan Solution architecture Plan IT operations IT deployment and testing IT lifecycle management IT operations & service optimization Transformational IT Management Change monitoring Execute change plan Improve org. change readiness Ensure sustainable change Organizational Change Mgt. Training Execution Training preparation Need, as-is and gap analysis Transfer, application and evaluation Competence & Training Mgt. Program/Project planning Program/Project initiation Program/Project realization Program/Project closure Program and Project Mgt. Stakeholder, communic. and performance mgt. Set up change plan 4 1 2 5 3
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  19. 19. © 2013 SAP AG. All rights reserved. 19Public 19 BTM² - Strategy Management Portfolio of strategic options Transformation readiness low high low high Strategic redirection Expand core business, transfer and development Ongoing observation Risks and opportunities Overcome stakeholder crisis Increase readiness through sensitization of stakeholders Consolidation & Focus: Focus on core competencies/business, Reduction of overcapacities Design business model: 4 strategic options
  20. 20. © 2013 SAP AG. All rights reserved. 20Public 20 BTM² - Strategy Management Transformation need analysis Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 low high Flexibility to react (time and options) lowhigh Pro-active management Pro-active management Lack of awareness and knowledge Lack of awareness and knowledge Lack of stakeholder commitment Lack of stakeholder commitment Lack of strategy Lack of strategy Lack of business success Lack of business success Negative impacts not yet visible Blockade of necessary transformation efforts Capital consumption, negative cash flow Loss of customers Unclear operating results Sustained success Lack of liquidityLack of liquidity Consideration of different stages: Decreasing flexibility with increasing pressure Transformation stages
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  37. 37. © 2013 SAP AG. All rights reserved. 37Public 37 Organizational Dynamics and P3
  38. 38. © 2013 SAP AG. All rights reserved. 38Public 38 Alignment of BTM2 & DYNM/P3 A rare industrial situation that sees its business strategy inextricably tied to these two principles of Penn Organizational Dynamics •Holistic approach •Balance of Process and Behavioral perspectives Mapping of Content of the P3 concentration •Project Management •Program Management •Risk Management •Portfolio Management •Business Process Management
  39. 39. © 2013 SAP AG. All rights reserved. 39Public 39 Mapping of Dynamics/P3 courses to BTM2 Processes Management Risk Management Competence & Training Management Organizational Change Management Strategy Management IT Transformation Management Value Management Meta Management Managing Project Portfolios, Bayney Group Team Dynamics: Kaminstein, Zane Coaching Others to Manage Conflict, Napier Organizational Culture Change, Vanderslice Mastering Organizational Politics and Power, Eldred Knowing Yourself: The Coach as an Instrument of Change, Napier DirectionEnablement Systems Thinking: Pourdehnad Complexity, Sustainability, and Systems Thinking, Barstow Organizational Essentials for Leadership, Choukroun Program/Project Management Organizational Project Management, Choukroun Program Management, Heaslip Managing Project Risk, Hornbacher Organizational Risk Management, Combrick-Graham Process Improvement, Stankard Business Process Excellence, Kirchmer The Art and Science of Organizational Strategy and Planning, Choukroun Organizational Diagnosis, Kaminstein, Zane Effective Entrepreneurship and Leadership, Keech Is Bigger - Inevitable, Better or Worse in Organizations?, Licht Psychodynamics in Organizations, Hirschhorn Leader-Manager as Coach, Russo Stories in Organizations: Tools for Executive Development, Greco Building a Business Case for Sustainability, Barstow, Nuessle Organizational Ethics and Integrity, Fielder
  40. 40. © 2013 SAP AG. All rights reserved. 40Public 40 Discussion
  41. 41. 41 Thank You! Contact information: Tim Hornung Practice Manager, Business Transformation Services Tim.Hornung@sap.com 920-791-0354 Joel Adler P3 Studies Leader, Organizational Dynamics University of Pennsylvania adler@sas.upenn.edu 610-940-1941

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