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BPM Business Value Patterns


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Joint presentation from Accenture and Oracle how to create a business case for your BPM project

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BPM Business Value Patterns

  1. 1. Jürgen Kress | Oracle Matthias Ziegler | Accenture <ul><li>BPM Business Value Patterns </li></ul>
  2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>BPM Business Value </li></ul><ul><li>Case Studies </li></ul>
  3. 3. Who are we? Dr. Matthias Ziegler is a senior manager and master technology architect at Accenture. He leads the BPM Automation group in Austria, Switzerland and Germany and the Architecture Innovation team, which pioneers emerging technologies at our clients. Jürgen Kress responsible for SOA & BPM partner adoption at Oracle EMEA. He is the founder of the Oracle SOA & BPM Partner Community and the global Partner Advisory Council with more than 3000 members from all over the world. Jürgen hosts the community with monthly newsletters, webcasts and quarterly events. Supplemented by many web 2.0 tools like discussion forums, online communities, blogs, twitter and wikis.
  4. 4. Who are you? <ul><li>your role? </li></ul><ul><ul><li>developer, architect, project manager? </li></ul></ul><ul><li>your use of BPM? </li></ul><ul><ul><li>in production, building, planned? </li></ul></ul><ul><li>your approach to BPM business value? </li></ul><ul><ul><li>defined upfront, realised, measured & confirmed? </li></ul></ul>
  5. 5. What do we talk about? <ul><li>BPM Business Value </li></ul><ul><li>when does BPM make sense? </li></ul><ul><li>how to identify and deliver high value? </li></ul><ul><li>how did others create value with BPM? </li></ul>
  6. 6. CIO Focus Area: Improving Business Processes Source: “Leading in Times of Transition: The 2010 CIO Agenda” , Gartner, January 2010
  7. 7. BPM Umfrage 2010 <ul><ul><li>In welcher Branche ist Ihr Unternehmen tätig? </li></ul></ul>Quelle: Business Technology 2010
  8. 8. BPM Umfrage 2010 <ul><ul><li>Welche Rolle haben Sie in Ihrem Unternehmen? </li></ul></ul>Quelle: Business Technology 2010
  9. 9. BPM Umfrage 2010 <ul><ul><li>Wie wichtig ist Ihnen der Roundtrip zwischen Prozessmodell und ausführbarem Prozess? </li></ul></ul>Quelle: Business Technology 2010
  10. 10. BPM Umfrage 2010 <ul><ul><li>Welche Gründe sehen Sie als maßgeblich für die Einführung von BPM an? </li></ul></ul>Wichtig Nicht wichtig
  11. 11. BPM Umfrage 2010 <ul><ul><li>Welche Werkzeuge sehen Sie im Kontext einer BPM-Initiative als wichtig an? </li></ul></ul>Wichtig Nicht wichtig
  12. 12. Typical Business Triggers for BPM <ul><ul><li>Examples for typical business triggers are : growth & innovation, standardization, compliance & safety, mergers & acquisitions, cost reduction, risk management, emerging competition, major business or IT transformations, major systems implementations (e.g. ERP), next generation process automation, or the decision to establish a BPM capability. </li></ul></ul>
  13. 13. What makes the difference? Transparency Agility Compliance Quality Efficiency Networking Integration Reasons for BPM failure Desired outcomes with BPM Faulty strategic thinking Faulty strategic thinking <ul><li>Not aligned with business strategy and goals </li></ul><ul><li>Not clear on BPM capability needs </li></ul><ul><li>No or poor prioritization of BPM improvement initiatives </li></ul>Inadequate implementation focus <ul><li>Unclear how to execute on business strategy </li></ul><ul><li>No ability to implement independent BPM initiatives in a coordinated and structured manner </li></ul><ul><li>No managed BPM project portfolio </li></ul><ul><li>Inadequate or fragmented BPM tool infrastructure </li></ul><ul><li>No or poor requirements for business process modeling, analysis, execution, and controlling </li></ul>People <ul><li>No or poor understanding of required BPM skills </li></ul><ul><li>Misalignment between organization and processes </li></ul>Taking the eye off the ball <ul><li>Failure to align processes and BPM approach with changing business or go to market model </li></ul><ul><li>Failure to identify high priority process areas </li></ul><ul><li>Slow in addressing critical areas due to late recognition </li></ul>
  14. 14. Agenda <ul><li>Introduction </li></ul><ul><li>BPM Business Value </li></ul><ul><li>Case Studies </li></ul>
  15. 15. BPM Values Quality Efficiency Agility Networking Transparency Integration Compliance Queensland University of Technology, Accenture: Study on the value of BPM, Brisbane, London, Philadelphia 2011. Internal Focus External Focus
  16. 16. Chose a systematic approach to target and deliver BPM business value Identify Process Priorities High Level Perf. Gap Analysis (for critical processes) Value/Issue Tree Process Impact Matrix Capability Assessment Model High Performance Business Research / Industry Trends Business Strategy Industry on a Page Foundation for Delivery of Value on all types of engagement, e.g.: Transparent, efficient and agile processes Next generation process automation Accelerated core system implementation BPM application configuration
  17. 17. Understand the value drivers in your industry and the performance goals of your organization Adapt and Align Value Drivers Based on the Company Needs Provides Industry Standards and Baseline Stay ahead of the Competition with High Performance Trends Industry on a Page High Performance trends Company Strategy By decomposing the Value drivers and determining the relevant Performance dimensions, detailed process level goals are identified as an input into the Process Impact Matrix
  18. 18. Focus on immediate impact and high value process improvements Process Impact Matrix Capability Assessment Model Key Impact Processes Assessing which processes are most critical relative to the organization’s key value drivers Gaps in the level of maturity in the processes areas are identified to deem areas of improvement Level 3 processes mapped and act as an input into the process areas that need to be assessed The Process Impact Matrix (PIM) identifies high impact processes, while the Capability Assessment Model (CAM) explains improvement options.
  19. 19. Identify high impact processes and apply the right process governance and improvement methods Not all processes have the same strategic impact (routine vs. strategic) or the same type of standardization need (local vs. global). Based on this evaluation, the segmentation matrix can be developed showing the relative positioning of the processes to each other.
  20. 20. Assess existing BPM capabilities and capture target levels required to support the organizations goals Example
  21. 21. Quantify expected benefits based on BPM Values <ul><li>Reduce Risk </li></ul><ul><li>Improve Process Visibility </li></ul><ul><li>Increase Revenue </li></ul><ul><li>Increase Stakeholder Value </li></ul><ul><li>Increase Customer Acquisition </li></ul><ul><li>Increase Market Share </li></ul><ul><li>Reduce Costs </li></ul><ul><li>Increase Productivity </li></ul><ul><li>Increase Profitability </li></ul><ul><li>Reduce Process Complexity </li></ul><ul><li>Improve Consistency </li></ul><ul><li>Improve Customer Satisfaction </li></ul><ul><li>Reduce Risk </li></ul><ul><li>Improve Compliance </li></ul><ul><li>Improve Customer Experience </li></ul><ul><li>Improve Partner Collaboration </li></ul><ul><li>Improve Employee performance </li></ul><ul><li>Increase Market Focus </li></ul>Transparency enables all other BPM Benefits Transparency Agility Compliance Quality Efficiency Networking Integration
  22. 22. This approach results in a roadmap for BPM that creates value from the beginning BPM Maturity Assessment: What BPM Capabilities do we need with which priority? PIM/CAM: What are the high impact low maturity processes? Project Priorities BPM Roadmap: Focused capability building with highest immediate value
  23. 23. Agenda <ul><li>Introduction </li></ul><ul><li>BPM Business Value </li></ul><ul><li>Case Studies </li></ul>
  24. 24. <ul><ul><li>Reduce the number of returned product as part of the repair process </li></ul></ul><ul><li>Lesson learned </li></ul><ul><li>Evolution in technology </li></ul>Results Leading retail company in South Europe and South America <ul><ul><li>Benefits & Outcomes </li></ul></ul><ul><li>Redcue replacements & returns </li></ul><ul><li>Reduction repair cost </li></ul><ul><li>Increase customer satisfaction </li></ul>Company Overview Business Challenge Case study: BPM Business Case for a retail company  Process governance & visibility
  25. 25. <ul><ul><li>Track the lead time of a citizen request </li></ul></ul><ul><li>Lesson learned </li></ul><ul><li>Process flexibility & empower knowledge worker </li></ul><ul><li>Case management </li></ul>Results Public Sector Justice ministry <ul><ul><li>Benefits & Outcomes </li></ul></ul><ul><li>Responsible person & process status </li></ul><ul><li>Understand required resources </li></ul><ul><li>Customer satisfaction </li></ul>Company Overview Business Challenge Case study: BPM Business Case for Justice Ministry  Process visibility
  26. 26. Questions & Contact Jürgen Kress Oracle EMEA SOA & BPM Partner Adoption Tel. +49 89 1430-1479 E-Mail: Dr. Matthias Ziegler Accenture Senior Manager & Master Technology Architect Tel. +49 (89) 93081-68792 E-Mail: